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Annual Inflation in Canada Hits a Record

Annual Inflation in Canada Hits a Record

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Annual Inflation in Canada Hits a Record

Annual inflation in Canada reached 6.8%, the highest since 1991. This is evidenced by the data of the Bureau of Statistics of Canada, writes Fanclub.

"Annual Inflation in Canada Hits a Record"
Annual Inflation in Canada Hits a Record

Rising inflation

“In April, Canadians paid 9.7% more food in stores than in April 2021. This rise in prices, which has exceeded 5% for five consecutive months, was the largest increase since September 1981,” the Bureau of Statistics said.

It is noted that the Russian invasion of Ukraine continues to affect the prices of energy, resources, and especially food. The greatest growth was shown by fuel, which increased in price by 36.3% over the year.

It is noteworthy that Canada has been recording record inflation for several months, so the issue of price reduction comes to the fore among the country’s domestic political priorities.

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As the Ministry of Finance wrote, consumer prices in France, harmonized with EU standards, rose by 5.4% in April in annual terms. This is a record pace since the beginning of the calculation of this indicator.

Data from the country’s statistics office.

In April, consumer prices in Canada (CPI index) soared by 6.8% in annual terms after rising by 6.7% in the previous month, according to data from the country’s statistics office. Thus, inflation has updated the maximum since January 1991.

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Experts generally did not expect an acceleration in the pace of recovery from the March level, according to Trading Economics.

The main factor is the increase in the cost of food and housing costs against the backdrop of an increase in the prices of energy carriers and other types of raw materials, including due to Russia’s special operation in Ukraine.

Products rose in price last month by 8.8% (in March – by 7.7%). The cost of housing and communal services jumped by 7.4% (6.8%) – a record increase since 1981, mainly due to a jump in prices for all types of energy resources for space heating by 64.4% (61%) and natural gas by 22.2% (18.7%).

Meanwhile, the rate of increase in the cost of gasoline in the country slowed to 36.3% from 39.8% in March.

The CPI index in April increased by 0.6% compared to the previous month.

Core inflation (Core CPI index) last month was 5.7% in annual terms, which is also a record. Relative to March, this indicator increased by 0.7%.

The data published on Wednesday confirmed the expectations of experts that the Bank of Canada is likely to continue raising interest rates at the next meeting, which is scheduled for June 1. It is predicted that the rise will be 0.5 percentage points – up to 1.5% per annum, according to MarketWatch.

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