P.E.I. inflation rate rises again, but below national average these days

The inflation rate on P.E.I. climbed back over three per cent in August, but it stayed below the national average, which was also up last month.

Statistics Canada released the latest Consumer Price Index (CPI) data on Tuesday morning.

Islanders saw a 3.5 per cent annual increase in August, while nationally, prices rose 4.0 per cent.

After leading the country in inflation for much of 2021 and 2022, P.E.I. saw its Consumer Price Index increases begin to level off. Annual inflation fell below one per cent in May and held at that level in June.

Prices began to rise in July, and the rate was up again in August.

On P.E.I., the increase in August was mostly about energy.

Back in May, the CPI for fuel oil was less than half what it was the year before, and the CPI for gasoline was down more than 20 per cent.

By last month, however, both types of fuel were more expensive than they had been the year before. The annual increase for fuel oil was 7.4 per cent, and for gas it was 3.0 per cent. Both commodities saw increases well over the national average.

While inflation on groceries remains relatively high, the Consumer Price Index in that category is rising less quickly than it was.

Annual grocery inflation was 6.1 per cent in August, compared to a year before. That's well above the overall rate, but through the end of 2022 and early this year, grocery inflation was in double digits.

Grocery inflation on the Island is also a little below the national average, which came in at 6.9 per cent in August.