Rent, electricity drove N.B.’s inflation rate up in July, but province claims it’s not worried

N.B. inflation went up in July New Brunswick now has the highest inflation rate in Canada.

It’s not an attractive accomplishment: the highest inflation rate in the country.

New Brunswick holds that unfortunate title after Statistics Canada released its July consumer price index last week.

The data shows the Canadian average sits at 2.5 per cent. Nova Scotia and Prince Edward Island each saw decreases from June: 2.3 and two per cent, respectively. But New Brunswick’s ticked up to 2.9 per cent.

The culprit, says economist Pierre-Marcel Desjardins, comes down to two sectors.

“One is we've seen higher rate increases for electricity in New Brunswick than other provinces. So that's one of the elements that explains the difference. The second one may be more problematic, and it's rent - apartment rent,” he said.

NB Power customers saw a nearly 13 per cent jump in their bills beginning April 1. There could be another hike on the horizon if the Energy and Utilities Board approves a second general rate increase next year.

Desjardins says average rent increases have exceeded 10 per cent in some areas over the past year.

They’re numbers neighbouring provinces are not dealing with – at least not to that scale, he says.

“The Nova Scotia government decided to put in place a strategy to try to reduce the increases for rent. The New Brunswick government has not done it so that this is translating into inflation numbers,” he explained.

David Kelly, spokesperson for the province’s department of finance and treasury board, claims the provincial government isn’t worried.

“On a year-to-date basis, inflation is at 2.7 per cent in New Brunswick as compared to 2.8 per cent for Canada. This result puts the province in the middle of the pack with Alberta, Nova Scotia, Quebec, and British Columbia all showing a higher rate of inflation over the opening seven months of the year,” said Kelly.

The Canadian average drop to 2.5 per cent has solidified expectations a third interest rate cut could come next month.

No matter the numbers, people say they’re still feeling the pressure at check-out counters, fuel pumps and on their monthly bills.

“On average, students are rooming with four-to-five people and they're still paying anywhere from $500-to-$800 a month in rent. So if they want to live with less people, your rents go significantly up,” said University of New Brunswick Student Union president Drashtant Varma.

The union launched a food bank last year after hearing there was a desperate need from many students.

Varma says they couldn’t believe how much it was used, and suspect it will serve even more this year.

“Inflation is kept in mind with that in, like, in retrospect, because how are we going to pay for the food? We need to get it to students. How many students are going to come get it? It's always in the back of our head,” he said.

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