P.E.I. inflation rate plummets, but food bank use still climbing

P.E.I.'s inflation rate fell almost three percentage points in March, but the slower rise in the cost of living is not yet being reflected at Charlottetown's food bank.

The annual inflation rate on the Island dropped from 6.7 per cent in February to 3.9 per cent in March. That's below the national rate of 4.3 per cent, the first time P.E.I.'s inflation rate has been below the national average since January of 2021.

Numbers, however, are still rising quickly at the Upper Room food bank and soup kitchen in Charlottetown, said Mike MacDonald, executive director of the Upper Room Hospitality Ministry.

"Still way too many people being forced to use services such as ours," he said.

"Many Islanders have been struggling for the last couple of years, and I think it's going to take many, many months of decreased inflation before people are able to really breathe again."

Upper Room assisted 930 families at the food bank and served 4,700 meals at the soup kitchen, a 25 per cent increase for both as compared to last March, MacDonald said.

Energy down, everything else up

A closer look at the inflation data reveals a mixed bag, with prices going both up and down on the Island.

Energy prices have had the biggest impact in bringing P.E.I.'s inflation rate down, in particular heating oil.

Heating oil prices were running at about $1.30/litre last month, as much as 40 cents lower than they were the previous March. Heating oil was a big driver for P.E.I. inflation through much of 2022, with prices peaking at more than $2.20.

The annual inflation rate for heating oil in March was -12.6 per cent. With the current price at $1.17, Islanders can expect heating oil to drag down the overall inflation rate again in April.

Energy costs in general, which would include gasoline, were down, with an annual inflation rate of -6.9 per cent.

Outside of energy, however, the picture was not so pretty.

There was no easing in inflation for groceries in particular. Food prices have been growing at double-digit rates since last spring and March was no exception, with the consumer price index for food purchased from stores up 10.3 per cent over the past year.

The cost of rental accommodation also continues to climb, up 7.2 per cent.