September 22, 2017 11:07 am

Inflation rate jump in Saskatchewan partly due to PST changes

The yearly inflation rate in Saskatchewan jumped in August, partially due to PST on insurance premiums.

Devin Sauer / Global News
A A

Changes in the provincial sales tax (PST) are partially to blame for a jump in Saskatchewan’s inflation rate in August.

Statistics Canada said the consumer price index increase 1.7 per cent on a year-over-year basis, up from 0.8 per cent in July.

Story continues below

READ MORE: Saskatchewan’s inflation rate edges up in July

The agency said the acceleration was partly due to the application of PST on insurance services in the province that came into effect at the beginning of the month.

Passenger vehicle insurance premiums rose 5.9 per cent, home and mortgage insurance was up 6.3 per cent along with tenant’s insurance premiums, and insurance, licences and other services for recreational vehicles rose 3.2 per cent when compared to July.

Year-over-year prices for restaurant meals rose 8.7 per cent, which agency officials said was largely attributable to PST changes from the spring.

Overall, prices accelerated in seven of the eight categories tracked by Statistics Canada, with the only decrease recorded in household operations, furnishings and equipment.

© 2017 Global News, a division of Corus Entertainment Inc.

Report an error

Comments

Want to discuss? Please read our Commenting Policy first.