Canada’s inflation rate jumped to a 31 year high of 6.7%

Canada’s inflation rate rose to 6.7% in March, much higher than economists’ expectations and a full percentage point higher than the 30-year high set in February.
Statistics Canada reported on Wednesday that the eight categories of economies tracked by the data agency had increased, from food and energy to housing costs and transportation.
Royce Mendes, an economist at Desjardins group, said: “the price surge in March was the largest monthly increase since the introduction of the goods and services tax in January 1991.”.
After the outbreak of coronavirus disease in 2019, the inflation rate has been rising and falling. After the uncertainty in 2020, the inflation rate appears at 2021 and higher levels due to the imbalance between supply and demand and the lowest interest rate in history.
Canada is not the only country to deal with high inflation. In the US, inflation reached a 40 year high of 8.5% last month.
Although the cost of almost all goods is rising rapidly, the transportation cost is still in the leading position, rising by 11.2% last year. An important reason for the rise in oil prices is that gasoline prices have risen by 39.8% since March last year.
Gasoline prices soared in March, mainly because of Russia’s invasion of Ukraine, leading to global supply chaos. Although prices have fallen since then, the average price of gasoline in many Canadian cities reached $2 per litre for the first time last month.
The impact of high oil prices on overall inflation is very large, as transportation and transportation costs are added to all other costs, from groceries (up 8.7%) to durable goods such as furniture (up 13.7% last year) and even air tickets (up 8.3%)
In March alone, furniture prices rose by more than 8%. This is the highest monthly growth in this category in more than 70 years.
John Salgueiro, the boss of Winnipeg JS furniture, who has been in business since 1974, said he had “never seen anything like this”
“Everything is going up, absolutely everything,” he said.

Many of the goods sold by Salguero were imported, and the prices of these goods soared in the epidemic. A container from Asia used to cost him $4000, but now it may cost him $20000.
It’s just freight. One of his biggest suppliers of bedroom products has just raised the price of real goods by 15% overnight.
“Everything from the cost of goods to freight is astronomical,” he said.
Food prices are particularly vulnerable to consumer anger because it is difficult to avoid or mitigate the impact of rising prices on such necessities. But Zainab Williams, a financial planner at elleverity wealth management in Carleton, Ontario, said., Said there was a way.
“Cooking is your good friend now,” she told CBC News. “Before adding, you need to develop a strategy to see what you can create with what’s in the storeroom.”
She says many of her clients have started using a variety of apps to help consumers eat well while saving money and offer substantial discounts on foods that are about to reach their best before a date.
“Families are doing a lot of financial acrobatics,” she said. “So in this environment, you have to think outside the box.”
Karen peck from Toronto says she has become more picky at grocery stores recently. “It’s hard for everyone now,” she said. “Personally, I cook much more at home.”
“Wherever you can save… You can save a few dollars everywhere. That’s what you can do.”
Although the cost of anything that needs to be transported is rising, the service industry is not immune to the current inflationary pressures.

The overall price of services has risen by 4.3% over the past year, up from 3.8% in February. As Leslie Preston, an economist at TD Bank, pointed out, the main factor is not pump price; It is the relaxation of COVID-19’s health restriction that pushes up the demand for close contact services, such as restaurant catering and other face-to-face activities.
“Price pressures in other sectors of the economy show that goods and services are under greater pressure,” she said. “By 2023, inflation may remain above the Bank of Canada’s target range, curbing consumer purchasing power and pushing up interest rates.”
While most goods and services have become more expensive, some goods have become cheaper, although far from offsetting price increases elsewhere.
Among them, the cost of mortgage service decreased by 5.4%, the cost of automobile insurance decreased by 6.2%, the cost of telephone bill decreased by 2.5%, and the cost of automobile registration fee decreased significantly by 28%.
But the feeling of this decline is uneven across the country. Statistics Canada pointed out that the main reason for this decline was the decision of the Ontario government to abolish the vehicle registration tax.