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May 26, 1997
(Finance)

 

Largest decline in cost of living in nearly 20 years

Finance and Treasury Board Minister Paul Dicks said today that the Consumer Price Index (CPI) decreased a full percentage point in Newfoundland and Labrador last month over March, 1997. This is the largest month-over-month decrease ever recorded since Statistics Canada began tracking the CPI nearly 20 years ago. The minister attributed a large portion of the decrease in the cost of living to the implementation of the Harmonized Sales Tax on April 1.

"The Government of Newfoundland and Labrador said that the new harmonized tax regime would result in lower prices for many goods and services in this province," said the minister. "I am pleased to see that the CPI has decreased by a full percentage point, making the cost of living in Newfoundland and Labrador lower in April over March. This is evidence of the positive impact of harmonization."

Significant declines were recorded in the cost of food purchased from restaurants, household furnishings, clothing and footwear, and automobile purchases. Small decreases were also recorded in the cost of alcoholic beverages and tobacco products.

Minister Dicks said the decrease in CPI demonstrates the benefits of the harmonized tax system. The new 15 per cent tax was implemented on April 1 in Newfoundland and Labrador, Nova Scotia and New Brunswick.

Contact: Karen McCarthy, Director of Communications, (709) 729-0110

1997 05 26 5:15 p.m.

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