OTTAWA NOTEBOOK

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Published: February 4, 1999

Hog and grain farmers may find it difficult to believe, but overall food prices last year rose almost twice as fast as the inflation rate.

In 1998, the consumer price index rose one percent, the lowest annual inflation rate in almost 40 years.

The food price index rose 1.7 percent. Hog and grain farmers, who faced falling prices, were not to blame.

“The biggest contributors to that rise were food purchased from table-service restaurants, fresh fruit and vegetables and dairy products,” Statistics Canada said in a Jan. 20 report on last year’s inflation rate. “Downward pressure was exerted on the index by lower prices for pork, ham and bacon and bread, rolls and buns.”

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In December, higher prices for potatoes, tomatoes and other fresh vegetables drove the fresh vegetable index up 1.9 percent for the month.

Export surplus

Canada ran a healthy $7 billion surplus in trade of agricultural and fishing products during the first 11 months of 1998 and despite lower grain exports, the value of Canadian food exports was up slightly from year-earlier levels, Statistics Canada reported last week.

To the end of November, agricultural and fish product exports were worth $22.7 billion, while the value of imports was $15.7 billion.

The surplus of exports over imports shrank last year. In 1997, the 11-month surplus was $8.5 billion.

While the value of exports increased 1.2 percent to the end of November, 1998, the value of imports rose 10.8 percent and $1.5 billion.

Phone service

After a year of study, the Canadian Radio-Television and Telecommunications Commission begins this week final public arguments on the issue of telephone service to high-cost rural or remote areas.

Final hearings are being held in Hull, Que.

The CRTC held hearings across the country asking whether telephone companies have an obligation to provide telephone service to remote or high-cost areas, whether governments should subsidize the service to keep costs low or whether satellite and other wireless technology is the better way to provide service.

A ruling is expected later this year.

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