Economist explains why N.B. has highest inflation rate despite national drop
Statsistics Canada reported July inflation rate of 2.9% for the province
High power rates and rent increases could be the cause of New Brunswick's July inflation rate — the highest of all provinces according to Statistics Canada — says Pierre-Marcel Desjardins, a professor of economics at the Université de Moncton.
Figures released this week show Canada's annual inflation rate dropped to 2.5 per cent in July — down from 2.7 per cent in June.
But New Brunswick's rate sat at 2.9 per cent.
Desjardins said increases in electricity rates here are higher than other provinces and there's an issue with residential housing.
"Not if you own your home — we're actually essentially at the national average — but if you rent, the increase over the past 12 months has been significantly higher than other provinces."
Desjardins
said that while the national rate is trending down, consumers likely
won’t see a significant decrease in prices when it comes to the cost of
living. (Sean Kilpatrick/The Canadian Press)
He pointed to the Higgs government's removal of the rent cap in New Brunswick as a contributor to the increase in rents.
In response to cost of living concerns, the government implemented a one-year rent cap in 2022, which prevented landlords from raising rents by more than 3.8 per cent.
Desjardins said while other provinces kept similar policies in place, New Brunswick removed the rent cap, which could explain the difference.
At the same time though, capping rent increases unilaterally may have short-term success, he said, but heavy rent control could force potential investors to go elsewhere to build amid a need for new apartments.
The Statistics Canada numbers show some provinces, such as British Columbia, were close behind New Brunswick's July inflation rate at 2.8 per cent — but others, such as Saskatchewan at 1.6, were much lower.
And Desjardins said that although the national rate is trending down, consumers likely won't see a significant decrease in prices when it comes to the cost of living.
Still, the increases have significantly slowed down compared to two years ago.
"When inflation goes down, it's not negative, so prices are not going down," said Desjardins. "So, unfortunately, we will not see the level of prices that we saw three, four or five years ago."
ABOUT THE AUTHOR
With files from Information Morning in the Summer
David Amos
Now is the summer of our discontent
https://www.cbc.ca/news/canada/new-brunswick/population-change-new-brunsswick-election-1.7301240
Home in Winterpeg $500,000 pays $5,949 property tax 2023
Home in Saint John $500,000 pays $11,359 property tax 2023
New Brunswick has the highest property tax, I am not cherry picking cities.
The table above shows that British Columbia is the province with lowest taxes.
Quebec property tax is relatively low as well compared to New Brunswick which has the highest property taxes in Canada.
https://www.nesto.ca/mortgage-basics/property-taxes-by-province-in-canada-highest-to-lowest/Reply to Fred Emmersen Turner
Reply to Michelle MacDonald
Groceries are big deal to me far more than my power or gas bill
Price of gas was cheaper too.
We are being gouged heavier here.
“ Desjardins said while other provinces kept similar policies in place, New Brunswick removed the rent cap, which could explain the difference.”
But then again it may not be that……
David Amos
Reply to Luc Newsome
Of course not but whose desk does the Loonie stop on?
James Risdon
Reply to Luc Newsome
Correct. It may also be that in New Brunswick most of the economy is controlled by very few people and so there is very little competitive pressure on them to keep prices down on goods and services, including rent.
Follow the money. It usually tells the real story.
Allan Marven
Higgs and NBpower is why.
Shawn Tabor
Reply to Allan Marven
Not just Higgs, Both Redcoats and Bluecoats, and the great Business elites. Sold the province out and its humans.
David Amos
Reply to Allan Marven
C"est Vrai
James Risdon
So, is it time to just give up?
Shawn Tabor
Reply to James Risdon
They just have us taxed to pieces while others in the know, profit handsomely. They have done a great job, showing Greed, entitlement, incompetence with absolutely no accountability. History is the proof. Crazy i know
Shawn Tabor
Reply to James Risdon
Taxes and Death yee haa
Allan Marven
Reply to James Risdon
Vote them out . Forget about how daddy voted.
Shawn Tabor
Reply to James Risdon
In the last 10-20 years, they ship or bring in or hire compete strangers to the province to do their dirty work. The face on the dollar, then that human goes back to wherever they came from. Check the history
David Amos
Reply to James Risdon
What are you gonna do about it now that the KISS Party is no more?
James Risdon
Reply to Allan Marven
I've never voted based on how my father voted. He and I had very different political views and religious beliefs.
Reply to Shawn Tabor
I can't say I understand this desire to keep Canadians from having children and then importing people from other countries.
I love immigrants. Most of them are very hard-working, decent people who contribute enormously to Canada. I just don't understand why there seems to be a push to restrict the number of births in Canada when we know we need more people.
Reply to James Risdon
Remember,,, they profit on Immigration, meaning a human, or many humans. As far as you having children, not so much, until they become adults or legal age. As far homosexuality, or more proper words for some reason, look at the Gene pool, as to say we are all a little bit different, mix and match the Genes, like a Giant soup. They are human, guaranteed. Let them be, as long as they abide by the same legal laws that the rest of us are supposed to.????. Cough. Throw in a bag of the 13 main religions. Do not even know how to comment, that way. They meaning, same kind of folks that they know betrayed their country for, lets say MONEY. Have a great day, laugh and smile because its more natural and also feels better
Gouging by NB Power... I don't think you needed an economist to figure that one out.
Shawn Tabor
Reply to Murray Brown
Ya think
David Amos
Reply to Murray Brown
Its not rocket science
Jos Allaire
Higgs is to be shown the door.
Allan Marven
Reply to Jos Allaire
He has already been shown it. We're gonna have to push him through it.
David Amos
Reply to Jos Allaire
Will I see your name on a ballot?
Bilingualism doesn't help. Having 2 of everything is sending us to grave financially. And the red tape for industry to come into NB is scaring businesses away!
MR Cain
Reply to Les Cooper
Sorry, but we do not have two of everything. As for industry, government just needs to be fair with who they send subsidies to.
Mathieu Laperriere
Reply to Les Cooper
Do you think what they put out for the English is matched dollar for dollar for the french? No, it never has been, never was to begin with and never will be.
Shawn Tabor
Reply to MR Cain
Now your talking. Good job.
David Amos
Reply to Les Cooper
"I work in Ab therefore I pay Ab taxes."
Something doesn't jive about your words
John Lawrence
Sometimes you just have to look at the leader of the dysfunctional party in power and you’ll find your answer. Higgs needs to move on to some other role in the private sector as he has accomplished absolutely nothing relevant
Les Cooper
Reply to John Lawrence
This has been a problem for years. Higgs hasn't been in that long.
MR Cain
Reply to Les Cooper
Long enough to leave us with more problems than when he started.
Tim Locke
Reply to Les Cooper
Higgs became finance minister in 2010 and premier in 2018. He's been around plenty long. People are tired of him.
Shawn Tabor
Reply to John Lawrence
Its a good debate on why, but the bottom line is, we have been getting the short end for so long for so many things that it is a way of life here. Greed, entitlement and this so called BUSINESS thing. You can’t make it up, it’s all showing how bad it truly is. Its now out of control and only going to get worse. They will defend it, because they caused it. All for a extra dollar. A few in the know, have profited handsomely. Really its a joke. Now lets pray for their souls for what they have created. LOL. They are full of B/S, and everyone knows it.
David Amos
Reply to Shawn Tabor
It has been this way since before you were born
Reply to David Amos
Because for the last 50 years we have had the worst politicians and not ones that defend the tax payers that's why In My Opinion.
David Amos
Reply to stephen magee
You are not wrong
Shawn Tabor
Reply to stephen magee
Backbones like Jellyfish lol. For sale to the highest paying opportunity that i can get as a politician. History has proven it.
Hugh MacDonald
"N.B. has highest inflation rate despite national drop"
Higgs government: "We're #1! We're #1!"
John Montgomery
Reply to Hugh MacDonald
Inflation hurts the poor people the most, after all.
David Amos
Reply to Hugh MacDonald
Why is it that I am not proud of Higgy's achievement?
Tim Locke
While I'm not against reducing sales tax on electricity, perhaps only on the first one or two thousand kWh, the problem with cutting sales taxes is that it benefits the wealthy more than the poor who aren't paying much sales tax anyway because most of their income is spent on shelter and food, which are sales tax exempt. Now the wealthy will be paying less tax on their expensive toys like vehicles, boats, RVs, etc., so there will be less money for social programs like healthcare and education and for paying down debt.
Les Cooper
Reply to Tim Locke
I get tired of supporting the poor. I work in Ab therefore I pay Ab taxes. To pay NB taxes would have cost me $10,000 more last year.
MR Cain
Reply to Les Cooper
You pay a lot of income tax in Alberta; the poor thank you.
David Amos
Reply to Les Cooper
Hmmm
Sad state of affairs we have here in New Brunswick.
Time for a change.
David Amos
Reply to Raymond Leger
Plus ça change, plus c'est la même chose N'esy Pas?
Another reason to cut the PST on the essential good of electricity.
David Amos
Reply to Kyle Woodman
Welcome back to the circus
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