April 22nd, 2024

Statistics Canada says telecom prices continue to come down, driving inflation lower

By The Canadian Press on March 19, 2024.

A Statistics Canada building and signs are pictured in Ottawa on Wednesday, July 3, 2019. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA – Statistics Canada says the cost of telecommunications services continues to come down, helping to drive the national inflation rate lower last month.

Consumers who signed on to a cellphone plan in February paid 26.5 per cent less than they did during the same month a year ago and comes after a 16.4 per cent year-over-year decline in January.

The federal agency says the year-over-year decrease was driven by lower prices for new plans and increases in data allowances for some cellular service plans.

It also says prices for internet access in February fell 13.2 per cent on a year-over-year basis and 9.4 per cent month-over-month, noting special offers available from providers last month.

The consumer price index report released Tuesday by Statistics Canada showed Canada’s overall annual inflation rate was 2.8 per cent last month, down from 2.9 per cent in January, with the agency highlighting the indexes for cellular and internet services as among the drivers of that decrease.

Telecom prices have been a hot topic lately with the issue currently being studied by House of Commons’ industry committee, which on Monday heard testimony from the chief executives of Canada’s three largest carriers.

This report by The Canadian Press was first published March 19, 2024.

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