- Price of everything going up at a much higher speed than normal.
- Customer rates in Canada are increasing at their swiftest yearly speed in almost 20 years.
Canada’s inflation rate escalates:
Canada’s inflation price escalated to the latest 18-year high of 4.7 per cent the previous month, led by strongly higher rates for energy.
Statistics Canada states the 4.7 per cent price is the topmost since Feb 2003.
The showing was in line with what economists were anticipating, but as Doug Porter with a bank of Montreal observed, “It’s almost a relief in 2021 when hot inflation readings aren’t even hotter than expectations.” Source – cbc.ca
“While perhaps not quite as eye-popping as the current 6.2 per cent U.S. headline inflation print, this still marks a huge upswing from inflation of just 0.7 per cent a year ago,” Porter stated. Source – cbc.ca
All eight parts that the data organizations tracks were higher, but the surge was led by higher transportation prices, which went up by more than 10 per cent in the previous year.
Within that, gasoline was a key factor, as rates at the pump have increased by 41.7 per cent since Oct of last year.
“The good news is that pump rates look to be about flat in the current month,” Porter said. “But just as pump rates may be stabilizing, other necessities are grabbing at the baton.” Source – cbc.ca
Indeed, beyond the price to fill them up, the increasing price of the car itself is also a key driver of inflation right now. New vehicle rates have increased by 6.1 per cent in the previous year, mostly due to an ongoing scarcity of semiconductor chips.
“Labour scarcities that have slowed down production, ongoing supply chain challenges and increasing prices for livestock feed continued to factor into higher prices for meat,” the data agency said. Source – cbc.ca