Inflation. Image credit: Pixaby
Ottawa/CMEDIA: Canada’s annual pace of inflation rose to 4.8 percent in December, marking its highest since 1991, says Statistics Canada.
The pace of price growth in December was higher year-over-year due to the culminating prices for food, passenger vehicles, and housing
The grocery prices increased by 5.7 percent, the biggest annual gain since 2011, reports.Statistics Canada today
The price of fresh produce also increased, says Statistics Canada due to unfavorable weather conditions in growing regions, as well as supply chain disruptions.
On the other hand, prices at the gas pumps were up 33.3 percent year-over-year in December compared with a 43.6 percent annual increase in November due to the stringent public health restrictions related to the Omicron variant.
December marked nine months in a row that inflation has come in above the Bank of Canada’s target zone of between one and three percent.
Canadian Imperial Bank of Commerce (CIBC) senior economist Andrew Grantham reportedly said the streak may not be over, which could be a cause for concern within the Bank of Canada.
The Bank of Canada is reportedly scheduled to make a rate announcement next week.