In Short : The removal of the carbon tax from home heating has led to Saskatchewan’s inflation dropping to under two percent. This suggests the impact of policy changes on economic indicators, highlighting the relationship between carbon taxation and inflation rates in the region.
In Detail : The Saskatchewan Government’s decision to remove the federal carbon tax from home heating helped reduce Saskatchewan’s inflation rate to 1.9 per cent, down from 2.7 per cent in December, according to the latest Consumer Price Index report released today by Statistics Canada.
Statistics Canada specifically identifies the removal of the federal carbon tax on natural gas as having a significant impact, saying:
“In Saskatchewan, the collection of the carbon levy ceased in January 2024, contributing to the province’s year-over-year price decline of natural gas (-26.6%).”
Crown Investments Minister Dustin Duncan said this provides a clear example of what the federal government needs to do if it really wanted to drive down the cost of living for Canadian families.
“If they are actually serious about fighting inflation, the federal government needs to remove the carbon tax on everyone and everything,” Duncan said. “This shows how much impact it has, just removing it on home heating in one province. Imagine the significant impact it would have on gas prices, grocery prices and everything else we produce and transport in Canada if the federal government scrapped the carbon tax.
“Instead, they are fully committed to another carbon tax increase on April 1. It shows they really don’t care about the impact is it having on Canadian families struggling with the cost of living.”