he prices of everything are rising in Canada. This is most apparent in transportation, energy, and food.
In January, the inflation rate in the country hit 5.1 per cent, the highest it's ever been since 1991.
On Wednesday, February 16th, Statistics Canada reported that the cost of living went up by 4.3 per cent, if you don’t account for items like food and energy. However, even 4.3 per cent is still the highest since 1999.
The produce prices at the grocery store are rising quickly, with an increase of 6.5 per cent throughout last year and leading up to January. This has been the fastest increase since 2009.
But that's not the only thing. The costs of shelter and housing have also increased by 6.2 per cent within the past year, the fastest increase since 1990, while gasoline prices have increased by 4.8 per cent during January alone. That’s now 31 per cent higher than what it was just a year ago.
This increase is impacting individuals, families, and businesses alike. Due to the high prices in the supply chain, stores also have to increase their prices for the customers.
Royce Mendes, an economist with Desjardins, told CBC News that higher input costs for the supply chain will mean even higher inflation and energy prices.
"With energy prices continuing to rise, inflation is set to accelerate even further and is unlikely to materially slow down before April," Mendes told the CBC.
At that point, the Bank of Canada is expected to raise the standard interest rates to try and curb the continuing inflation. The 5.1 per cent overall inflation rate is higher than what polls by Bloomberg were expecting, the expected number being 4.8 per cent.
Canada, however, is not the only place impacted by inflation. Imbalances occurred in the supply chain due to the COVID-19 pandemic and high amounts of stimulus spending caused the rise of inflation nearly everywhere.
If you’re interested in aspects like business, economics, and supply chain, ABM College offers a variety of business courses to help you get started on your career. Learn more about how you can apply today.