Alberta Inflation Slows; Biggest rent increase in Canada

Despite slowing inflation in Alberta, rental prices in the province have increased at nearly double the national average.

Statistics Canada released its April Consumer Price Index report on Tuesday.

According to the report, the country's annual inflation rate fell slightly to a three-year low of 2.7 percent in April from 2.9 percent in March.

In Alberta, the slowdown was largely driven by electricity and natural gas prices.

However, the cooling was moderated by rising rental prices.

“Rents have gone up in the last couple of years,” said Dustin Oxenbury of Calgary.

“We had a total of $1,300. Now we are $1,900, $1,950.”

Statistics Canada found that rental prices in Alberta rose 16.2 per cent year-on-year in April and 14.2 per cent in March.

This marks the eighth consecutive month that rents have increased in Alberta, above the national rate of 8.2 per cent in April.

This has led some people to demand that rent increases be limited or even temporarily suspended.

“We have some people who are over 100 percent rent, so their rent is going to double,” said Maggie Wlodarczyk of ACORN's Calgary chapter.

There are many people living on the street, there are people who are pitching tents by the river.

Statistics Canada notes that the growth coincides with strong demand from high net interprovincial migration to Alberta.

According to the Alberta economist, this is not like the usual population growth associated with the energy sector.

“Many people are moving away from more expensive markets like BC and Ontario looking for cheaper housing,” said Mark Parsons, ATB's chief economist.

The organization's migration data shows Alberta's population will grow by 202,324 to 4.8 million in 2023.

Economists expect interest rate cuts to begin this summer, but say it could come down slowly.

“We expect to continue to see pressure on housing and rents due to population growth. We will continue to see people coming here from other parts of the country,” Parsons said.