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Inflation rate in Canada reaches the highest level at 6.8 percent

Inflation rate in Canada reaches the highest level at 6.8 percent

By عبد السلام

Published: May 18, 2022

Almost everything at the grocery store continued to increase in cost, pushing the annual inflation rate higher in April.

Statistics Canada said on Wednesday that the Consumer Price Index for April rose by 6.8 percent compared to last year, 6.7 percent for March.

The rate was the highest since January 1991 when the annual rate was 6.9 percent. Douglas Porter, chief economist at Bank of Montreal, wrote in a briefing report: "The main takeaway from the release of the April Consumer Price Index is that inflation is spreading much more broadly."

"We expect the worst is yet to come in the headline readings, and 6 percent inflation will remain with us by the end of this year."

Overall food costs rose by 8.8 percent compared to last year, while Canadians paid 9.7 percent more for food in stores in April, the largest increase since September 1981, and the cost of dining out rose by 6.6 percent.

Compared to last year, the cost of fresh fruit rose by 10 percent, fresh vegetables increased by 8.2 percent, and the cost of meat rose by 10.1 percent.

The cost of bread increased by 12.2 percent, while pasta rose by 19.6 percent, and rice added 7.4 percent.

Statistics Canada said the Russian invasion of Ukraine in late February increased price pressure on food products using wheat, while bad weather in growing regions affected food prices.

The agency also said that rising prices for things like fertilizer and natural gas continued to increase costs for farmers who bore some of these expenses.

The overall increase in the cost of living also contributed to a 7.4 percent rise in housing costs with the higher cost of home heating.

Natural gas increased by 22.2 percent, and fuel oil and other types of fuel rose by 64.4 percent.

Compared to last year, consumers paid 36.3 percent more for gasoline in April, but the increase was less than the annual gains of 39.8 percent in March.

Excluding gasoline, the annual rate for April was 5.8 percent compared to annual gains of 5.5 percent in March.

The average of the three core inflation measures closely monitored by the Bank of Canada rose to 4.23 percent in April compared to 3.93 percent in March.

The central bank raised its key interest rate target by half a percentage point to 1 percent last month and warned that more rate hikes are coming as it works to try to bring inflation back to its 2 percent target.

In last month’s monetary policy report, the Bank of Canada said it expected the inflation rate to reach close to 6 percent in the first half of the year, but it has since said it is likely to revise its forecasts.

The next Bank of Canada interest rate announcement is scheduled for June 1 and here is what happened in the provinces (previous month in parentheses):

-Newfoundland and Labrador: 6.6 percent (6.3)

-Prince Edward Island: 8.9 percent (8.9)

-Nova Scotia: 7.1 percent (6.8)

-New Brunswick: 7.6 percent (7.4)

-Quebec: 6.8 percent (6.7)

-Ontario: 6.9 percent (7.0)

-Manitoba: 7.5 percent (7.4)

-Saskatchewan: 5.9 percent (5.7)

-Alberta: 6.3 percent (6.5)

-British Columbia: 6.7 percent (6.0)

The agency also released rates for major cities, but warned that the numbers may be widely volatile because they are based on small statistical samples:

-St. John's, NL: 6.0 percent (5.6)

-Charlottetown - Summerside: 9.5 percent (9.4)

-Halifax: 6.6 percent (6.6)

-Saint John: 7.3 percent (7.0)

-Quebec City: 5.8 percent (6.0)

-Montreal: 6.7 percent (6.5)

-Ottawa: 6.8 percent (7.5)

-Toronto: 6.6 percent (6.5)

-Thunder Bay, Ontario: 5.1 percent (5.6)

-Winnipeg: 7.3 percent (7.3)

-Regina: 5.7 percent (5.5)

-Saskatoon: 5.7 percent (5.6)

-Edmonton: 6.1 percent (6.5)

-Calgary: 7.1 percent (7.3)

-Vancouver: 6.6 percent (5.7)

-Victoria: 6.9 percent (6.1)

-Whitehorse: 5.8 percent (6.1)

-Yellowknife: 7.0 percent (6.9)

-Iqaluit: 3.5 percent (3.7)

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