Inflation In Canada Is Up Again & How Much Extra We're Paying For Everything Is Painful
Inflation in Canada is up again and nearly everything is more expensive than it was in June last year.
According to the Consumer Price Index for June 2022 released by Statistics Canada, the nation's inflation rate rose by 8.1% over the preceding 12 months.
This would mark the highest yearly inflation rate increase since January 1983.
The largest driver of inflation in June was the continued hikes in the price of gasoline, which has increased 54.6% since 2021 — the product of higher global demand for crude oil in the first weeks of the month.
Canada also saw the cost of other essentials continue to surge. Grocery bills are expected to continue to rise, with a jump of 8.8% on food alone.
For those looking to vacation this summer, the cost of hotels and air travel is also elevated. The price of a stay in traveller accommodation rose by 49.7% across Canada — and a whopping 68% in Ontario alone. Whereas the cost of flights has gone up by 6.4% since May.
Canadians can also expect their gas and electric bills to be elevated, as energy costs have surged by 38.8%
Unfortunately, inflation is still outpacing wages, which have risen by only 5.2% in the last year.
These inflation figures are not the case in every province, either. Some regions in Canada are on their way to experiencing more than the average 8.1%.
The highest inflation by province in the country is in P.E.I., which is currently experiencing a 10.9% jump in costs since June last year. Yikes.
However, it's not all bad news.
While the expenses of owned housing did increase by 12%, it was still a slowdown from May's 14.8% hike.
As inflation continues to climb, the Bank of Canada has taken the strategy of pumping up the prime interest rate to slow inflation — something that has been done multiple times this year and could continue ahead of 2023.
This article's cover image was used for illustrative purposes only.