- The expense of living is rising at its fastest rate in decades.
- Retail costs are growing at their most rapid pace in decades.
Canada’s inflation rate increased to 8.1 percent last month; Statistics Canada says, the most rapid yearly increase in living expenses in decades.
The data agency said gasoline was the most significant contributor to the overall rate, as pump costs were up by 54.6 percent compared to the same month a year back.
If gasoline is denied out, the inflation rate would be 6.5 percent.
Another primary source of inflation has been food costs, which increased by 8.8 percent in the past year.
That’s the same increase seen the last month, but economist Tu Nguyen with audit, tax, and consulting agency RSM Canada says it’s too soon to figure that food costs may have peaked.
“Part of that can be attributed to Canada consuming more domestically produced food in the summer, which helps keep prices down,” she told.
Higher costs for travel and tourism
On top of higher costs for food and gasoline, the data agency reported a wave in demand and expenses for travel-related services.
“The return of sporting events, festivals, and other extensive in-person gatherings has resulted in a higher need for housing, especially in major urban centers,” Statistics Canada said.
Housing costs increased by nearly 50 percent across the nation compared with a year back, and the expense of air transportation grew by 6.4 percent in the month and is up by 25 percent compared to a year before.
Judy MacDonald has a small hotel in Prince Edward Island, the Barachois Inn. Like many in the industry, she lost almost 90 percent of her business in 2020; even last year was only half what she’d usually see.
Source – CBC News