02/22/2013 02:40 EST | Updated 02/22/2013 03:15 EST

Inflation Rate Alberta: Province Sees Deflation As Canadian Rates Slip


Canada's inflation numbers are now the lowest in three years, a trend led by Alberta which now actually finds itself in deflation.

Deflation means the price of goods and services in the province actually dropped.

The Bank of Canada believes a one to three per cent inflation rate to be a healthy range for a strong economy. Nationally, the inflation rate was tagged at 0.5 per cent but in Alberta the inflation rate was actually -0.5 per cent.

The decline was led by electricity prices, which were 29.5 per cent below the historical highs recorded in 2012, Statistics Canada said.

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The agency also released rates for major cities, and Edmonton's deflation rate was 0.4 per cent while Calgary was at 0.3 per cent.

The main cause for the drop was gasoline prices, which fell 1.8 per cent in January from a year ago, according to Statistics Canada.

The largest decreases in gasoline prices occurred in Saskatchewan at 8.8 per cent and Alberta at 7.3 per cent.

With files from CP