Statistics Canada: Removal of carbon tax linked to decrease in Saskatchewan's inflation rate

Statistics Canada reported that the Saskatchewan government's decision to remove the carbon tax on home heating played a role in reducing the province's inflation rate in January. According to the federal agency's Consumer Price Index report released on Tuesday, Saskatchewan's inflation rate decreased to 1.9% last month, compared to 2.7% in December.

Crown Investments Minister Dustin Duncan emphasized the significance of the move, suggesting that the federal government should follow suit to alleviate the financial burden on Canadian families.

Duncan stated, "If they are actually serious about fighting inflation, the federal government needs to remove the carbon tax on everyone and everything."

He highlighted the impact of eliminating the carbon tax on home heating in a single province, suggesting that extending this measure nationwide could significantly reduce gas prices, grocery costs, and overall production and transportation expenses in Canada.

However, Duncan criticized the federal government's decision to proceed with another carbon tax increase on April 1, suggesting a lack of concern for Canadian families.

The Saskatchewan government has been steadfast in its opposition to the federal carbon tax since its inception, even challenging its constitutionality in court, albeit unsuccessfully.

While Prime Minister Justin Trudeau announced a temporary pause on carbon pricing for heating oil in Atlantic Canada in October, this had minimal impact on Saskatchewan, where the majority of residents use natural gas for heating.

Premier Scott Moe advocated for extending the pause on carbon pricing to all sources of home heating across the country, threatening to cease collecting the carbon tax on home heating in Saskatchewan if the federal government did not provide similar relief to residents as seen in Atlantic Canada.

Additionally, the national inflation rate in Canada also experienced a decline month to month, with the rate dropping from 3.4% in December to 2.9% in January. This decrease was primarily attributed to lower gas prices, while grocery inflation also slowed down, decreasing from 4.7% in December to 3.4% last month.

Meanwhile, The Canadian Journal of Public Health reports that a significant proportion of Canadians, up to one-fifth, are grappling with "energy poverty" due to soaring costs. A peer-reviewed study led by a McGill professor revealed that between 6-19% of Canadian households are affected by this phenomenon.

According to Blacklock's Reporter, Mylene Riva, Canada Research Chair in Housing, Community, and Health at McGill, emphasized the challenges faced by households experiencing energy poverty, noting instances where homeowners were forced to cut back on winter heating to the extent of seeing their breath indoors. The study underscores the critical importance of home heating during Canadian winters, stating that it can be a matter of life and death.

"Despite Canada being an important energy producer not all Canadians can access or afford adequate levels of energy services at home to meet their needs, maintain healthy indoor temperatures and live a decent life, a situation known as energy poverty," the Journal read.

Furthermore, a 2020 Department of Environment Regulatory Impact Analysis Statement warned of potential "energy poverty in the future" if cheaper energy sources like gasoline, propane, heating oil, and diesel were replaced with more expensive alternatives. These findings underscore the complex challenges surrounding energy policy and the importance of balancing environmental goals with affordability and accessibility for all Canadians.