According to the Consumer Price Index (CPI) released by Statistics Canada, consumers in Newfoundland and Labrador paid 1.6% more for goods and services in 2018 compared to 2017.
The Energy index rose by 6.5% last year as higher crude prices exerted upward pressure on fuel oil prices and the Newfoundland and Labrador Board of Commissioners of Public Utilities approved an average increase in electricity rates of 6.8% effective July 1, 2018. Gasoline prices increased by a more moderate 2.2% as higher crude oil prices were offset to some degree by a decrease in gasoline sales tax in the province— down 4¢/L in December 2017.
Most major categories recorded price increases in 2018. The highest increases occurred in Alcoholic beverages and tobacco products, Transportation, and Shelter, each between 3% and 4%.
Nationally, inflation averaged 2.3% in 2018.
The Department of Finance’s April 2019 forecast predicts inflation in Newfoundland and Labrador to average 1.5% in 2019.