It’s costing consumers more this summer as prices from transportation, fuel and groceries all remain considerably high in Canada. But as prices continue to soar nationally, inflation is skyrocketing past the national average in Alberta. The national inflation rate is three per cent, but in Alberta, it sits at 4.2 per cent. It’s the same level in Calgary. Compared to the rest of the country, Alberta is seeing one of the highest inflation rates. Gas prices have soared year over year, up nearly 26 per cent last month compared to 2025 — largely in part due to the U.S. war with Iran and the constant opening and closing of the Strait of Hormuz. “Inflation, if you exclude gasoline prices (and) transportation costs, core inflation is still comfortable for the Bank of Canada. The problem is, if this starts to build into more broadly into other goods,” said Pedro Antunes, chief economist at Signal 49 Research. Some money-saving experts know Albertans are feeling the pinch. Stacy Yanchuk Oleksy, the CEO of Money Mentors, says those worried about their expenses creeping up should write down and track their spending. “That’s number one,” she said. “Number two, open a savings account. Put $5 in. If you can’t afford five, put two.” Despite grocery prices slightly ticking up, July marked 18 straight months that grocery price inflation outpaced the consumer price index. “A lot of Albertans are struggling with inflation and the cost of living, post-pandemic. I joke that a bag of apples is $9. It doesn’t come with caramel or a manicure and a pedicure. It’s just $9 for apples,” Yanchuk Oleksy said. Travel prices also increased due to more expensive hotels and flights to U.S. destinations because of the World Cup this summer. Air transport is also up 12 per cent from last year due to higher jet fuel costs. ATB Financial also expects that increased inflation isn’t enough to force the Bank of Canada to hike its interest rate next month, remaining on hold for the rest of 2026.
