B.C. has experienced greater inflation on consumer goods than any other part of the country, according to a new report released by Statistics Canada.
The Consumer Price Index rose across all provinces over the course of 2015, but was most pronounced in B.C., where it shot up 1.9% year-over-year in December after increasing 1.7% in November.
Across Canada, food prices saw high gains likely due to the low dollar. Canadians paid just over 4% more for food bought in grocery stores in December year-over-year, which followed a year-over-year increase of 3.7% in November.
Statistics Canada said the sharp rise in food prices is directly related to the high cost of fruit and vegetables, a consequence of the low loonie, according to Werner Antweiler, a professor at UBC’s Sauder School of Business.
“When we look at the overall effect of exchange rates on consumer prices, the items that are mostly of concern are essentially what you buy in the grocery stores,” Antweiler told Vancity Buzz earlier this month.
It’s not all bad news for people in B.C., though. While consumer goods may be on the rise, the housing market is expected to slow this coming year. Younger people generally can’t afford to enter Vancouver’s housing market, slowing price inflating in 2016, experts predict.