Saskatchewan Sees Inflation Drop Following Carbon Tax Removal on Home Heating
Removing the carbon tax on home heating has brought down Saskatchewan’s inflation rate by almost a full percentage point, according to Statistics Canada.
The policy adjustment led to a decrease in the inflation rate to 1.9% in January from the previous month’s 2.7%, as reported by Statistics Canada. The Consumer Price Index highlighted a significant 26.6% drop in natural gas prices, directly attributing this to cutting the carbon tax at the start of the year.
The impact of this policy change was also reflected in local inflation rates, with Regina experiencing a decrease to 2.4% from 3.1%, and Saskatoon’s inflation rate dropping to 2.3% from 3.2%.
“If they are actually serious about fighting inflation, the federal government needs to remove the carbon tax on everyone and everything,” Crown Investments Minister Dustin Duncan said in the province’s press release.
“This shows how much impact it has, just removing it on home heating in one province. Imagine the significant impact it would have on gas prices, grocery prices and everything else we produce and transport in Canada if the federal government scrapped the carbon tax.
The national perspective also mirrors a downward trend in inflation, with Canada’s overall rate falling to 2.9% in January from 3.4% in December, influenced by lower gas prices and a slowdown in grocery inflation.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
