Manitoba had the lowest annual inflation rate in Canada in 2024, but not everyone sees that as reason to celebrate quite yet.
According to the Stats Canada report on the Consumer Price Index, Manitoba had an annual inflation rate last year of 1.1 per cent. Meanwhile, the 2024 annual Canadian average inflation rate was 2.4 per cent.
Finance Minister Adrien Sala said the provincial government’s plan is working to make life more affordable for Manitobans.
“The gas tax holiday helped ensure Manitobans had more money in their pockets to help afford things like their mortgage and groceries,” Sala said. “And with a permanent cut to the gas tax and a hydro rate freeze in 2025, Manitobans can remain confident our government is doing everything we can to make life as affordable as possible.”
Sala noted that lower gas prices, driven by the provincial fuel tax holiday, contributed to this slowdown. A permanent cut to the fuel tax was instated on Jan. 1, which was a 10 per cent reduction to the fuel tax rate previously in place.
However, it might be too soon to celebrate these successes.
Lakeside MLA Trevor King said Manitoba still leads the country with some of the highest year-over-year price increases for food and housing. He added that gas rates shot up with the return of the gas tax, and Autopac rates are increasing by 5.7 per cent along with the federal carbon tax set to start on April 1.
“The gas tax holiday in 2024 most definitely had an impact on Manitoba’s lower inflation rate; however, going into 2025 with a new 12-cent tax implemented, we can predict that these rates will change immediately,” King said.
“Although the gas tax holiday may have lowered the inflation rates for Manitoba in 2024, I feel it did not help the ones who needed help the most, such as those that cannot afford to drive a car or maybe not afford to register and drive the one they own. With the loss in revenue of almost $400 million from this tax holiday we will see much of our failing infrastructure and social programs ignored with no funding available.”
Looking ahead, King expects that families will pay more than $800 more on groceries this year due to food inflation.
“Every day, Manitobans are making tough choices between putting food on the table, heating their homes, filling their gas tanks or paying their bills on time,” King said.
“Many are cutting back on groceries, falling behind on payments or going without basic necessities just to make ends meet.”
Robert Price-Lewis, president of the Stonewall & District Chamber of Commerce, said it’s positive to hear that Manitoba is finally below the national average Consumer Price Index, yet he also expressed some reservations.
“This hasn’t been the case for many years. However, I don’t think the government should be patting themselves on the back quite yet,” he said.
“According to recent projections, the Consumer Price Index for Manitoba in 2025 is expected to be slightly above the Bank of Canada’s two per cent target, with estimates placing it around 2.1 per cent inflation.”
And while the fuel tax break may have helped in 2024, Price-Lewis doesn’t think it will be a factor this year — especially if current prices are anything to go by.
“Stonewall is marginally a bedroom community, which means a lot of our residents drive to the city or elsewhere for work,” he added. “If they’re spending more on gas it’s less they will have in their pockets for other things. That’s bad for local businesses.”
As a business owner himself, Price-Lewis notes there is a flip side to lower inflation, and its impact on business growth is a crucial consideration.
“While lower inflation can ease cost pressures for consumers, it can also signal slower economic activity. If local businesses aren’t seeing enough revenue growth due to restrained inflation, it creates challenges for expansion, hiring and overall profitability,” he said.
“To counter this, policies aimed at stimulating commerce — such as small business grants, incentives for local entrepreneurship or initiatives to promote shopping locally — could help balance the equation.”
At the same time, Price-Lewis looks at the year ahead with a sense of optimism, particularly for local communities.
“I’m encouraged by the loyalty of the Stonewall community to its local businesses and to the resilience of our business owners,” he said, “and I hope 2025 is a good year for all.”
