Gas and food costs skyrocket in Canada hitting a 30-year inflation high
Inflation keeps pushing prices way up for everything from food to gas and housing — in fact, the latest report from Statistics Canada puts the inflation rate at a 30 year high.
Canada's inflation rate is up 4.8 per cent on a year-over-year basis — the highest since 1991, according to the latest data from Statistics Canada. This is up from just a few months ago when the inflation rate hit an 18-year-high at 4.4 per cent.
And to make things worse, salaries are not increasing to match inflation. Wages rose just 2.6 per cent during the same time period, Statistics Canada finds.
"… meaning that, on average, prices rose faster than wages, and Canadians experienced a decline in purchasing power," the report notes.
Once again StatCan blames the price increases on "unfavourable weather conditions during the growing season and supply chain disruptions…"
Prices were up on all types of goods and products across the board.
Grocery prices went up 5.7 per cent year over year, the largest yearly increase since November of 2011. People paid more for fresh fruit such as apples, oranges and even bananas.
Anyone who bought a car in December 2021 paid 7.2 per cent more than those who did in December 2020.
Even though we can't really travel right now, if we did, airfares went up a whopping 24.7 per cent. And those looking to escape for a drive saw gas prices jump 33.3 per cent year-over-year in December.
Although some experts think this could be a peak, BMO chief economist Douglas Porter told the Canadian Press that inflation rates may yet rise higher.
"They definitely may still rise in the coming months," Porter said.
Many hope The Bank of Canada, which is scheduled to make a rate announcement next week, will act to stop skyrocking inflation.
Join the conversation Load comments