P.E.I.'s inflation rate continues to drop, but still highest in country

The inflation rate on P.E.I. fell for the second straight month in July, but remains the highest in the country.

The rate fell from 10.9 per cent in June to 9.5per cent in July. The national inflation rate fell from 8.1 per cent to 7.6 per cent.

Newfoundland and Labrador has the lowest rate of inflation at 6.9 per cent.

P.E.I.'s inflation rate has been the highest in the country since March of 2021.

The food inflation rate rose slightly from June to July, but the rates for shelter, gasoline and energy all dropped.

'Inflation has probably peaked for now'

Jim Sentance, professor of economics at UPEI, says it's reason to be a "little bit" optimistic.

"I think a lot of it depends on where oil and gas prices are going to go. I think inflation has probably peaked for now."

Sentance predicts another drop in inflation next month as well, and bigger drops next winter.

"That doesn't necessarily mean the pain of higher price levels is going to go away because the inflation rate just measures the rate at which prices are increasing," he said.

"Even if the inflation rate was to drop to zero next month, we'd still have record high prices in a lot of areas. So, you know, you'd almost have to have negative inflation for a while to get back to where we were before."