Article by Bailey Moreton, My Yellowknife Now
Illegal cannabis across Canada is pushing down prices for legal recreational cannabis in stores in Yellowknife.
The consumer price index (CPI) for recreational cannabis dropped ten per cent as of August 2020 compared with August 2019, according to the latest consumer price index numbers.
The consumer price index – which measures the change in the price of a product compared to a set average price – also saw slight decreases in a variety of alcohol products in Yellowknife, but none as much as cannabis.
Nationally, cannabis saw a 9.6 per cent decrease in its CPI. Meanwhile, all other alcoholic and tobacco product products – except for wine bought from liquor stores – saw standard price increases, according to Taylor Mitchell, an analyst with Statistics Canada.
One reason for the disparity could be the continued existence of an illegal cannabis market.
“Prices for recreational cannabis from legal sources are continued to be undercut by lower prices in the illicit market,” said Mitchell. “This competition from the illicit market is contributing to lower prices in the legal market.”
Mitchell added the increased supply and stockpiles that distributors of recreational cannabis that have grown since cannabis was legalized in Canada may have added to a decrease in price.
Mitchell said competing with illegal cannabis and a greater supply is “also having some spill over into the medicinal cannabis market,” where CPI prices are also lower.