Residents and Calgary and Edmonton have a bit of a reason to celebrate this holiday season, as these two cities witnessed the largest monthly decreases in consumer prices last month. Per reporting agency Statistics Canada, these markets experienced decreases amounting to 0.2 percent versus October. Alberta was the sole province that witnessed this type of decline. Consumer prices in the whole of Canada increased by 0.1 percent over October.
ATB Financial economist Dan Sumner said that the slight Consumer Price Index decrease is mostly attributable to lower prices for energy commodities such as gasoline, natural gas and electricity. He advised that there is a concern about an onset of deflation, people should not be overly concerned, as the energy price dip is short-term in nature.
Energy prices actually rose by 6.7 percent from October 2009 to October 2010, ending with an increase of 9.1 percent during October. Gasoline prices were higher by 7.2 percent versus November 2009. Prices for electricity rose by 5.9 percent during that 12-month period, and ended with a hike of 8.1 percent this past October.
Statistics Canada reported that passenger vehicle sales prices increased by 3.9 percent versus November of last year. Replacement costs for vehicles grew by 4.6 percent, as opposed to 4.9 percent in October.
Prices rose in other essential categories during this 12-month period. Transportation prices grew by 4.6 percent, food costs rose by 1.5 percent, shelter prices increased by 2.6 percent and health care prices advanced by 2.2 percent.
In other areas: Prices for tobacco and alcoholic beverages witnessed a 2.5-percent increase. Costs in the clothing category actually declined by 3.2 percent.