Gas prices helping keep inflation rates low in Manitoba

New numbers from Statistics Canada reveal Manitoba has the lowest inflation rate of any province across the country.

The data shows while Canada's inflation rate rose 3.4 per cent in December 2023, Manitoba's rate came out to 1.7 per cent – down from 1.8 per cent in November 2023.

"(Manitoba) is the only province in the country where we actually saw that decline," said Business Journalist Bryan Borzykowski. "(It's) good news for Winnipeggers and Manitobans."

Experts say the decline is driven by falling fuel costs.

"Gas prices dropped quite a bit. They were up 1.4 per cent nationally, they were down 9.2 per cent in Winnipeg. So that contributes significantly to the inflation numbers."

Economists say the drop is due to lower prices set by refineries and gas stations.

"The other western provinces had marketing margins increase, whereas Manitoba didn't. So Manitoba ended up accelerating the least of any of the provinces," said Denam Drew, an economist with Statistics Canada.

Experts believe the province's low inflation rate may put people at an advantage over those living in other provinces.

"If you're living here, you're feeling it way less than you would across the country," said Borzykowski.

However, that doesn't mean Manitobans are loosening their purse strings.

"People here in Winnipeg are pulling back a bit on the various categories. They're being a little more cautious with their spending."

A major category includes food prices, which saw a national increase of 4.7 per cent year over year.

"Even if we're seeing downward pressure in certain areas, (grocery prices) affects us all," said Drew.

Experts say while it may be a bumpy ride, it will get better.

"Eventually, hopefully, things will pick up again and the economy will start moving again and maybe you can start spending a little more. But right now, just be cautious if you're feeling that and watch your wallet before going out and spending," said Borzykowski.

In an emailed statement to CTV News Winnipeg, Premier Wab Kinew said it's going to see some relief for Manitobans.

"We know there's a lot more to do to help families pay the bills at the end of the month. That's why we're focused on lowering costs for people, including with our gas tax holiday, which is currently saving Manitobans 14 cents a litre every time they go to the pump," said Kinew.