Manitoba continues to see inflation rate drop, experts say there's still a ways to go
The latest inflation numbers are out from Statistics Canada and the Consumer Price Index shows inflation continues to slow throughout Canada, including in Manitoba.
February 2023's inflation rate came in at 5.2 per cent in Canada, while in Manitoba the number sits at 6.4 per cent.
Both have dropped since January – 5.6 in Canada and 6.9 in Manitoba – sticking with a trend that started in the back half of 2022.
"I think that that's obviously a good sign for both Manitobans and Manitoba businesses, is that it seems like the majority of the pressures that we felt as a result of inflation with those cost pressures is behind us," said Chuck Davidson, the president and CEO of the Manitoba Chambers of Commerce.
Davidson said the hope is this decrease will continue and it will lead to prices in the province flattening out.
"So I think what this really will start to do is restore confidence for Manitobans that have taken on increased debt, and so have businesses over the course of the last number of years as well, to put them to a more stable position."
Loren Remillard, the president and CEO of the Winnipeg Chamber of Commerce, said while the number in Manitoba is still high – the third highest in Canada – the situation is trending in the right direction.
"Every time we've spoken with our members, surveyed our members, inflation is amongst the top three concerns and challenges that they're facing," said Remillard. "But for now, everything seems to be trending in the right direction, which would give an indication that perhaps we've peaked and we can start making some plans for a time when we won't be in this level of inflation."
COULD PRICES DROP AT THE GROCERY STORE?
As inflation has skyrocketed since the pandemic, so has the price of everyday goods in Manitoba, such as food at the grocery store.
Michael Mikulak, the executive director of Food and Beverage Manitoba, said it's hard to say if prices will drop for food items the same way the price of oil and gas climbs and falls with inflationary changes.
"I think it's highly dependent on what drops. Will the cost of oil come down? Will other things? I mean, there could be a lag. It really depends on what position a lot of these companies were in coming into it, where they were able to position themselves," said Mikulak.
"I don't think there is a simple answer to when food prices will stabilize, or come down. I'm not sure if they will come down substantially. I mean, I think at this point, everybody's hopeful that they will start to stabilize."
He noted the food industry is impacted by so many other factors, pointing to the war in Ukraine, the COVID-19 pandemic and even climate change.
Mikulak added food producers that he has talked to say they have been trying to pass on the savings to Manitobans wherever it is possible.
"Just know that the food and beverage manufacturers across this country are working hard to keep those costs at bay and really to pass on any savings that they're able to. The margins in this sector are extremely small, most are operating in single digits. So this is not a sort of attempt to make a buck off of this."
WHAT IS A STABLE INFLATIONARY NUMBER MANITOBANS SHOULD LOOK FOR?
Both Remillard and Davidson said there is still a ways to go before inflation is viewed as stable in the province.
"I think it'd be similar to what we're expecting with the Bank of Canada and I think the Bank of Canada set inflationary rates of two per cent. So we're still a ways from that point, but I think all signs seem to be that we're heading in that direction," said Davidson.
The two per cent mark is a number that Remillard said Manitobans have learned to live with.
"We felt that it created the appropriate level of growth, but didn't create undue pressures in the system, you know runaway costs, runaway pressures, which we've seen in other countries where you see hyperinflation," said Remillard.
"I think at the end of the day, the perfect number for any Manitoban is one that allows me to be able to plan with confidence and that I can make sure that I'm maximizing my discretionary spending, make all my bills that I need to pay and have a little left over to enjoy, you know, the full quality of life that people want."
CTVNews.ca Top Stories
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
He replaced Mickey Mantle. Now baseball's oldest living major leaguer is turning 100
The oldest living former major leaguer, Art Schallock turns 100 on Thursday and is being celebrated in the Bay Area and beyond as the milestone approaches.
What a urologist wants you to know about male infertility
When opposite sex couples are trying and failing to get pregnant, the attention often focuses on the woman. That’s not always the case.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
It could take years to catch up on child vaccinations in Ontario post-pandemic
Ontario is still playing catch up on routine vaccinations that many children missed during the pandemic and public health officials are warning that it could take years to solve the problem.