The most recent monthly Statistics Canada report on the Consumer Price Index (CPI) across Canada once again shows Manitoba has the lowest inflation rate in the country.
“For too long, Manitobans were reaching deeper into their savings to cover their monthly expenses,” said Finance Minister Adrien Sala. “Our government took action right away to lower costs for families by cutting the 14-cents-a-litre gas tax, putting money back in your pocket and lowering overall inflation in Manitoba.”
For the fifth straight month, Manitoba’s inflation was the lowest in Canada. Manitoba’s consumer inflation accelerated to 1.3 per cent on a year-over-year basis in May after rising by 0.4 per cent in April but remains well below Canada’s inflation rate of 2.9 per cent.
Manitoba fared better than the national average on a number of the commonly purchased foods and services measured by Statistics Canada including rent, gasoline, phone services, recreational equipment and clothing.
“Our decision to immediately cut the gas tax has had a direct impact on inflation, lowering everyday costs for families in Manitoba,” said Sala. “We know too many people are still feeling squeezed and our government is taking action to keep costs lower for people, whether they’re trying to pay their mortgage or buy groceries.”
The Manitoba Bureau of Statistics estimates the fuel tax holiday has directly contributed to a decline of 0.4 percentage points to inflation. Manitoba’s gas tax holiday is also helping to reduce food inflation, which looks at both food purchased from stores and food purchased from restaurants, noted the minister.
