Does anyone else have déjà vu? After the inflation rate in Canada rose to 4.8 percent last month, Statistics Canada is now reporting the annual rate of inflation has risen to 5.1 percent for the first time in thirty years.
This is the fastest pace for inflation recorded in the country since August 1991.
Much of the increase had to do with rising prices in groceries and housing, with gas prices taking the cake after going up a whopping 31.7 percent as compared to December due to the ongoing Russia-Ukraine conflict. If it weren’t for climbing gas prices, the inflation rate would only be sitting at 4.3 percent.
Food prices went up by 6.5 percent, which Statistics Canada links to heightened shipping rates due to issues in the global supply chain. Rental increases and higher prices for new homes are responsible for driving up shelter pricing to 6.2 percent, the highest it’s been in February 1990.
While the inflation rate was expected to be high, this 5.1 percent increase is higher than the 4.8 percent predicted by a Bloomberg poll.
The inflation rate is expected to rise until at least April 2022, but the silver lining is we’re doing better than our American neighbours. Their inflation rate is currently sitting at 7.5 percent, the highest it’s been for them in 40 years.