Rent returns as big driver of P.E.I. inflation

$30 in June had the buying power $27.05 compared to June of last year. (Shutterstock - image credit)
$30 in June had the buying power $27.05 compared to June of last year. (Shutterstock - image credit)

For the first time in a year, the annual inflation rate on P.E.I. fell in June — but at 10.9 per cent, it remains the highest in Canada.

The rate was down just 0.2 percentage points, meaning the cost of a standard basket of goods and services was not increasing quite as fast as the month before. The province last saw the inflation rate fall in June of last year, when it dropped from 6.0 to 5.3 per cent.

The national inflation rate was 8.1 per cent in June, up from 7.7 per cent.

P.E.I.'s inflation rate has been the highest in the country since March of 2021 and, like the rate across the country, has been rising steadily.

Annual inflation rate

In February of 2021 the annual inflation rate in the province was 1.4 per cent, typical of the low rates the province has seen for decades. But by April it had risen to 5.3 per cent and it has remained above five per cent ever since.

While the overall rate was little changed, there were some shifts in what kind of goods and services were driving the trends.

The inflation rate for fuel oil fell 38 per cent, but still sat at an astonishing 74.1 per cent.

Other factors that have been major contributors to inflation on the Island rose in cost again.

Grocery inflation rose to 11.6 per cent, gasoline to 63.4 per cent, and rented accommodation to 12.7 per cent.

Rent has been a big factor in pushing P.E.I.'s inflation rate over the national average.

In April, the annual inflation rate for rented accommodation was 15.3 per cent, compared to just 4.2 per cent for Canada as a whole. The P.E.I. rate fell to 9.0 per cent in May while it was largely unchanged nationally.

But the P.E.I. rate was back up in June, while it remained a minor factor for Canada, at 4.3 per cent.

The inflation rate in Charlottetown and Summerside was a little higher than in rural areas, at 11.5 per cent.