It's the highest inflation has been since January 1991. 😬
According to the Government of Canada's latest Consumer Price Index (CPI), the previous 30-year high was in February 2022 and it saw a 30-year high in the national interest rate, with a raise of 5.7% since the same time in 2021.
But, this March, there was an increase of 6.7% compared with March 2021, breaking the previous high and making it the strongest jump since January 1991.
One of the most drastic price climb that is driving this inflation rate can be found in the cost of gasoline. Since March 2021, gas prices have risen a whopping 39.8%.
This might not be that surprising to you if you've visited the pumps at all recently, with gas prices recently hitting all-time highs all over the country.
And, when gas prices go up that much, that means the cost of transportation goes up too. Add these things together, you get an increase in a whole lot of essentials, including groceries, which have gone up 8.7% in the last year.
Other affected products include plane tickets which are up 8.3%, passenger vehicles up by 7% and furniture, up 13.7%.
According to the CPI, these raises can be traced back to Russia's invasion of Ukraine, which has put global trade into chaotic uncertainty.
These increases have prompted the Bank of Canada to undergo a historical bumping up of the interest rate from 0.5% to 1% to help combat inflation, with financial analysts predicting at least two more throughout 2022.
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