With the high cost of living in Lotus Land relative to the rest of the country, it's some good news that the overall price of living in B.C. didn't change too much in July.
According to Statistics Canada data, the consumer price index (CPI) in B.C. rose 0.26% between June and July, but the CPI was unchanged on a year-over-year basis last month. That compares with a 1.3% average increase in Canada, and a 2.2% increase in Alberta over the same 12-month period.
So far this year, B.C.'s monthly CPI increases have been among the slowest in the country.
Since January, overall prices have risen 0.68% compared with 1.48% in Canada, 1.73% in Ontario and 2.5% in Alberta.
B.C. consumers can thank the demise of the HST for much of the slower-than-average price increases. Central 1 Credit Union noted that many prices for goods and services affected by the HST have dropped since the GST and PST were reinstated in April.
On a year-over-year basis in July, prices for restaurant food and recreational equipment fell 4%, while the price of health and personal care products dropped nearly 3%.
The price declines have been most notable since April. Restaurant food prices have fallen 5.4% since March. Meanwhile, household furnishing prices have fallen 5.9% and clothing and footwear costs have dropped 5.3%.
The provincial government's plan to cut generic drug prices also kicked in on April 1, leading to a 6.2% drop in prescribed medicine costs since March.
But Central 1 noted that a correcting housing market has also contributed to the price declines.
The price of owned accommodation has fallen more than 2% for the 12-month period ending in July, half of that drop occurring since January.
However, increasing prices for energy and other services over the past year has offset those declines.
Natural gas prices have jumped 6.4% year over year, and gasoline prices have risen 7.3%.
But computer gamers and social media addicts have felt the biggest pinch.
Internet access and subscriptions to online content providers has jumped 11.3% year over year, a jump surpassed only by an 11.4% increase in Alberta and well above the 3% average increase in Canada. •
