The Economics and Statistics Division maintains archives of previous publications for accountability purposes, but makes no updates to keep these documents current with the latest data revisions from Statistics Canada. As a result, information in older documents may not be accurate. Please exercise caution when referring to older documents. For the latest information and historical data, please contact the individual listed to the right.
<--- Return to Archive
For additional information relating to this article, please contact:
June 27, 2023ANALYSIS OF CONSUMER PRICE INDEX FOR MAY 2023 Nova Scotia’s all items Consumer Price Index (CPI) increased 2.0% year-over-year in May 2023. This was the lowest year-over-year inflation rate reported for Nova Scotia since February of 2021. Nova Scotia's inflation has been slowing after peaking at 9.3% in June 2022. Nationally, consumer prices increased 3.4% year-over-year in April 2023, following a 4.4% increase in April. This was the smallest year-over-year increase at the national level since June 2021. Inflation was highest in Saskatchewan and lowest in Prince Edward Island.
The most significant upward contributors (combining price increase as well as share of the consumption basket) to Nova Scotia's 2.0% year-over-year inflation were: rent, mortgage interest cost, food purchased from restaurants, purchase/leasing of passenger vehicles, and personal care supplies/equipment. These were offset by sizable downward year-over-year contributions from: gasoline, fuel oil, childcare/housekeeping services, internet services, and telephone services.
On a monthly basis, Nova Scotia's all items CPI was down 0.3% April to May 2023. National prices were up 0.4% with increases in five provinces. Quebec reported the largest monthly increase in inflation while Nova Scotia reported the largest monthly price decline in May.
Nova Scotia's monthly inflation was influenced by upward contributions from: traveller accommodation, rent, fresh vegetables, food purchased from restaurants, and sugar and confectionery. These upward contributors to Nova Scotia's monthly CPI were offset by some notable downward contributors: gasoline, fuel oil, telephone services, clothing accessories, watches and jewellery, and fresh or frozen chicken.
Energy prices play a significant role in inflation rates. Nova Scotia's energy prices were down 20.4% from May 2022 to May 2023. Year-over-year energy prices were down 12.4% nationally with declines in all provinces. Prince Edward Island reported the largest drop in year-over-year energy prices.
On a monthly basis, Nova Scotia's energy prices declined 5.8 from April to May 2023. National energy prices were down 0.8% with declines in all provinces except Alberta. Nova Scotia reported the largest monthly decline in energy prices.
Because fuel oil for home heating is a larger component of Nova Scotia's consumption basket than in other provinces, Nova Scotia's energy prices (and overall inflation) are more sensitive to fluctuations in the global price of crude oil. Nova Scotia's energy prices accelerated dramatically after Russia's invasion of Ukraine in March 2022. Nova Scotia energy prices peaked in May 2022 and have since been trending down, though there was a substantial increase in October and November.
Nova Scotia's year-over-year decline in energy prices (-20.4%) was the third consecutive decline and the largest year-over-year decline since May 2020.
Food price inflation was 9.0% in Nova Scotia (May 2023 vs May 2022), up from the 8.5% year-over-year pace of inflation reported in April 2023. National food prices increased 8.3% in May, unchanged from the growth recorded in the previous month. Food prices were up in all provinces; Manitoba reported the highest food price inflation while British Columbia reported the least food price growth (though it was still 7.7%).
On a monthly basis, Nova Scotia's food prices were up 1.0% from April to May. National growth in food prices was 0.8% from April to May with gains in all provinces (leading: New Brunswick and Newfoundland and Labrador, lagging: Manitoba, Quebec and Saskatchewan).
Food and energy prices are heavily influenced by volatile global commodity markets. Nova Scotia's underlying inflation rate excluding food and energy was 4.2% from May 2022 to May 2023. This was the third fastest among provinces (after Quebec and Saskatchewan). Nationally, inflation excluding food and energy was 4.0%. Alberta reported the slowest growth in inflation excluding food and energy prices.
On a monthly basis, Nova Scotia's inflation for all items excluding food and energy was 0.1% from April to May 2023. Prices for all items excluding food and energy were up 0.4% nationally with gains in all provinces except Manitoba and Saskatchewan. The fastest monthly growth was in Quebec.
Shelter cost inflation slowed to 1.5% in Nova Scotia from May 2022 to May 2023, decelerating considerably from 4.8% year-over-year increases reported in April and 9.7% year-over-year increases reported in February. National shelter prices were up 4.7% with year-over-year gains in all provinces except Prince Edward Island. Saskatchewan reported the largest year-over-year increase in shelter prices.
Monthly shelter costs were down 0.4% in Nova Scotia from April to May 2023. Nationally, shelter costs were up 0.4% from April to May with gains in all provinces except Maritime provinces. Maritime provinces were the only three provinces reporting monthly declines in shelter costs with Prince Edward Island posting the largest monthly decline.
Among detailed food products with available data, Nova Scotia's year-over-year inflation was fastest for preserved fruits while many food products reported year-over-year inflation in excess of 10% in May. All food products reported year-over-year price growth in May.
In detailed shelter cost components, cleaning products reported the fastest year-over-year price increases while fuel oil prices posted the largest decline.
Household operations/furnishings costs were down 0.4% overall. Prices were down for utensils/tableware/cookware, appliances, textiles, furniture, financial services, child care and housekeeping, internet access, and telephones. Year-over-prices were up most for shelter components.
Overall transportations costs were down 5.2% year-over-year in May owing to the substantial declines in gasoline from May 2022 to May 2023.
Health and personal care costs were up 8.6% year-over-year on gains in all sub-components led by non-prescribed medicine and personal care supplies.
Clothing and footwear prices were up 1.1% year-over-year with faster gains in men's clothing. Clothing accessories/jewellery prices was the only sub-component posting a year-over-year decline in May.
Nova Scotia's overall prices for recreation, education and reading were up 3.4% from May 2022 to May 2023 with faster increases for reading and travel services/accommodations, offset by falling prices for home entertainment equipment/services and purchases and operations of recreational vehicles.
Nova Scotia's prices for alcohol, tobacco and recreational cannabis were up 5.4% year-over-year with the fastest growth in price for liquor purchased from stores as well as beer purchased from stores.
Trends
Since the start of the Bank of Canada's inflation-targeting monetary policy regime, inflation for all items has periodically risen above a 4% year-over-year pace. This is typically followed by periods of slow price growth or even negative price changes. The most recent acceleration in inflation was the strongest since the inflation-targeting era began.
Many of these periods of accelerated and slowed inflation are attributable to volatile commodity prices, especially energy prices. Once the more volatile commodity prices are excluded, inflation in Nova Scotia has largely been below 2% for much of the last 20 years. However, the recent rise in inflation in 2021 and 2022 spread beyond commodity prices and has only recently started to edge down at the national level.
The Bank of Canada examines 'core' measures of inflation that are intended to remove the effects of volatile components and capture underlying inflation trends that are more connected to capacity in the Canadian economy. Core measures of inflation may also indicate where all items inflation is headed.
Canada's core measures of inflation remained mostly at or below the Bank's target of 2% for over a decade prior to 2021. However, after prices accelerated in 2022, core inflation measures also started to rise, peaking at over 6% for the CPI-common measure before declining in recent months.
Source: Statistics Canada. Table 18-10-0004-01 Consumer Price Index, monthly, not seasonally adjusted; Table 18-10-0256-01 Consumer Price Index (CPI) statistics, measures of core inflation and other related statistics - Bank of Canada definitions
<--- Return to Archive
