Telecom Services Prices Decline, Driving Down Canada’s Inflation Rate
In a recent report by Statistics Canada, the cost of telecommunications services in Canada continues to decrease, contributing to a decline in the national inflation rate for the month.
According to the data, consumers who subscribed to a cellphone plan in February experienced a significant decrease in prices, with a 26.5% reduction compared to the same month last year. This follows a 16.4% year-over-year decline in January. The decline in prices was attributed to lower rates for new plans and increased data allowances offered by cellular service providers.
Additionally, prices for internet access also saw a notable decrease, falling by 13.2% year-over-year and 9.4% month-over-month in February. Statistics Canada noted that special offers from internet service providers contributed to the decline in prices.
The consumer price index report released by Statistics Canada highlighted the impact of these reductions on Canada’s overall annual inflation rate, which decreased to 2.8% in February from 2.9% in January. The report emphasized the role of cellular and internet services prices as key drivers behind this decline.
Telecom prices have garnered attention recently, with the issue under examination by the House of Commons’ industry committee. The committee heard testimony from the chief executives of Canada’s three largest carriers, indicating a growing interest in addressing and understanding the dynamics of telecommunication pricing in the country.
