Inflation in Canada rose 5.1% in January 2022, the first since September 1991, according to Statistics Canada data.
Excluding gasoline, the Consumer Price Index (CPI) rose 4.3% year over year in January 2022. “This is the largest increase since the inception of the ‘index in 1999,’ said the federal agency.
She believes that pandemic-related challenges “continue to put pressure on the supply chain,” which is why consumer energy prices remain high.
Between December and January, the CPI increased by 0.9%, “which corresponds to the largest increase observed since January 2017”, noted Statistics Canada.
In Quebec, the CPI rose 5.1% year over year, exactly the same as the national average. On a monthly basis, it increased by 0.6% between December and January.
It is the residents of Prince Edward Island who have to deal with the worst inflation rate in the country, which reached 7.1% over one year, followed by Ontario (5.7%), the Manitoba (5.5%) and New Brunswick (5.3%).
Overall, Canadians continued to feel the impact of rising prices for goods and services, especially for housing, food and gasoline.
Shelter costs were up 6.2% year over year. This is the largest increase since February 1990, according to Statistics Canada data.
Prices for food purchased from stores rose 6.5% in January 2022, up from 5.7% a month earlier. This rapid increase in the price of groceries, which is the largest annual increase recorded since May 2009, is attributable in particular to disruptions in the supply chain.
Gasoline still on the rise
Between December and January, gasoline prices paid at the pump by Canadian motorists increased by 4.8%. Year over year, however, the increase was 31.7%.
“Gasoline prices rose amid global oil supply concerns stemming from international political events,” Statistics Canada said.
