Despite the recent interventions by the Bank of Canada on its key rate to slow down the overheating of the economy, nothing seems able to curb the wave of inflation that is sweeping the country.
Last February, the inflation rate on an annual basis reached 5.7%; it therefore increased by one percentage point in one month.
According to data measured by Statistics Canada, prices rose in each of the eight major components of the economy monitored by the agency.
The average hourly wage of employees, meanwhile, rose only 3.4% year over year in March, said Statistics Canada.
Energy prices are of course at the head of the pack, with an 11.8% increase in gas prices between February and March. On an annual basis, a liter of gasoline cost 39.8% more in March 2022 than in March 2021.
Heating oil, meanwhile, rose 19.9% between February and March, reaching an annualized increase of 61% compared to March 2021.
Food is not spared from the surge in food prices either, which increased by 8.7% in March compared to the same period last year. This is the largest annual increase seen in the food sector since March 2009.
Eggs and dairy products, for example, cost 8.5% more in March 2022 compared to March 2021. The price of breakfast cereals meanwhile increased by 12.3% during the same period, compared to 17.8% increase for pasta.
<q data-attributes="{"lang":{"value":"fr","label":"Français"},"value":{"html":"Les augmentations sont attribuables aux prix à terme du blé, qui ont atteint leur plus haut niveau en14years in the wake of the conflict between Russia and Ukraine, two major wheat exporters. Prices for fertilizer, a key input in wheat production, were high before the conflict broke out in Eastern Europe, due in part to high energy prices”,”text”: “The increases were attributable to wheat futures’ prices, which rose to their highest level in 14 years in the wake of the dispute between Russia and Ukraine, two major wheat exporters. Prices for fertilizer, a key input in wheat production, were high before the conflict broke out in Eastern Europe, due in part to high energy prices”}}”>The increases were attributable to wheat futures’ prices, which rose to their highest level in 14 years in the wake of the dispute between Russia and Ukraine, two major wheat exporters. Prices for fertilizer, a key input in wheat production, were high before the conflict broke out in Eastern Europe, due in part to high energy pricesexplains Statistics Canada.
In addition to food, the durable goods sector – notably furniture and motor vehicles – also experienced significant price increases. From an overall perspective, the price of durable goods rose 7.3% year over year, the largest increase since 1982, notes Statistics Canada.
Specifically, the price of motor vehicles jumped 7% compared to March 2021, while furniture is 13.7% more expensive than the same period last year.
Supply chain issues and rising input prices and shipping costs contributed to the rise
explains the federal agency.
