Inflation rose 6.7% in Canada, a record since 1991

Consumer prices continued to rise in Canada in March 2022, where year-on-year inflation reached 6.7%. That’s the biggest increase since January 1991, according to the latest Statistics Canada data released on Wednesday.

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Excluding gasoline, the consumer price index (CPI) rose 5.5% year-on-year in March, beating the rise recorded in February 2022 (+4.7%), the index’s “fastest growth rate” since 1999, according to Statistics Canada.

The federal agency estimates that March’s price hikes generally continued, putting further pressure on Canadians’ wallets. “The price increase came amid ongoing pricing pressures in Canada’s housing market, significant supply constraints and geopolitical conflicts impacting the agriculture, energy and commodities sectors,” it said.

In addition, the employment rate has fallen “to a record low”. In March, average hourly wages for employees rose 3.4% year over year.

Between February and March, CPI rose 1.4%, “the biggest increase since January 1991,” Statistics Canada found.

The increasingly expensive shopping basket and petrol

Year over year, Canadians paid 8.7% more for in-store groceries in March, versus February’s 7.4% growth. This is the largest annual increase since March 2009, according to Statistics Canada.

Gasoline prices rose 11.8%m/m in March after rising 6.9% in February, on the back of supply insecurity following the Russian invasion of Ukraine. Consumers had to pay 39.8% more to fill up with petrol in March.

Car prices rose year-on-year (+7%).

Strong increase in Quebec

In Quebec, the CPI rose 6.7% year-on-year. On a monthly basis, it rose by 1.3% between February and March.

On Wednesday, Business and Innovation Minister Pierre Fitzgibbon told a news conference that he would “look closely [le ministre des Finances] Mr. Girard, what will be done” to help Quebecers.

“We did the $500 program once. We need to see what part of the inflation will be systemic and what part will be short-term. And that, frankly, I’d be embarrassed to give you my prediction, but we’ll respond accordingly. Quebecers have to take care of that because there are actually people for whom a 6.7% increase is a lot,” he added.

Elsewhere in the country, it is residents of Prince Edward Island who are grappling with the country’s worst inflation rate, which hit 8.9% over the year, followed by Manitoba and New Brunswick (7.4%) and Ontario (7%). ). .

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