A drop in the cost of cellphones contributed to a slow down in inflation in British Columbia. (Photo: Pixabay)

Declining cellphone charges lead to drop in B.C. inflation rate

Year-to-year inflation in British Columbia stood at 2.1 per cent in July 2019, down 0.5 per cent

British Columbians received a break on the price of consumer good in July, partly because their cellphone bills dropped.

Year-to-year inflation in British Columbia stood at 2.1 per cent in July 2019, a drop of 0.5 per cent compared to the same period last year.

This said, it is important to note that price for many consumer goods still rose, albeit at a slower rate, with the proviso that British Columbia recorded the second-highest drop after Manitoba.

Overall, Canadian inflation rose two per cent on a year-over-year basis in July, matching the increase in June. Prices increased year over year in all eight major components that make up the consumer price index.

RELATED: Inflation hits Bank of Canada 2% target for second straight month

READ MORE: Lower gas prices slow annual inflation rate to Bank of Canada’s 2% bull’s-eye

According to Statistics Canada, consumers paid 2.5 per cent less for telephone services in July compared to June.

“The decline follows an industry-wide shift in the pricing structure of cellular data plans amid intensifying competition among wireless providers,” the agency said in accompanying note.

Prices for air transportation and travel tours also rose at a lower rate in July than in June, following a decline in jet fuel prices.

Gasoline prices declined 6.9 per cent year over year in July after falling 9.2 per cent in June.

Looking at other categories, the cost of food rose 3.8 per cent, while the costs for recreation, education and reading rose 2.7 per cent. Shelter, as well as household operations, furnishings and equipment, rose 2.3 per cent.

In a case of good news, bad news, the cost of alcoholic beverages, tobacco products and recreational cannabis rose 1.2 per cent year-to-year.


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