Gas prices down in Halifax area, but why?

CITYnews halifax / By Mark Hodgins

There’s been another drop to gas prices this week in the Halifax area, as diesel holds steady for a second week.

The Nova Scotia Energy Board has used its weekly adjustment to drop the minimum price for self-serve regular by 4.2 cents to 140.7.

On the diesel side, it’s a second straight week with no change to prices. Diesel remains at 151.2.

This time last year we were paying $1.51 for gasoline and $1.59 for diesel.

What’s driving inflation?

Randall Bartlett, deputy chief economist at Desjardins, said the big factor easing inflation right now is the termination of the consumer carbon price.

Because the carbon levy was in place for consumers in 2024, the Liberals’ move to end the policy in April has meant lower prices at the gas pumps in recent months, skewing data in the year-over-year comparisons.

Shelter inflation is also diminishing as the pace of population growth slows, easing competition for apartments and reducing rent prices in many cities.

Canadians shopping for a new mortgage today are also seeing rates closer to four per cent on a five-year fixed loan. Rates were well over five per cent this time last year.

One area where consumers are still feeling the pinch is food inflation, which StatCan pegged at 3.4 per cent in August. That rate is still well below the double-digit yearly gains seen during the height of the inflationary period of a few years ago.

Askari said consumers are feeling the cumulative impact of years of inflation pushing prices higher, particularly at the grocery store.

Prices tend to rise quickly on the way up but are “sticky” on the way down, if they ease at all, he said.

With files from Craig Lord, The Canadian Press