Canada’s annual inflation rate reportedly rose back in April ahead of analysts ’expectations. The price spike in April was largely driven by rising food and shelter prices based on a report released by the Canadian Department of Statistics just now.
Headline inflation hit 6.8% in April, beating analysts' forecasts that the annual rate would remain at 6.7%. The April reading is close to the highest reading of 6.9% as recorded in January 1991. In conclusion, the April inflation reading also carries an indication that for 13 consecutive months it is above the 1-3% control range.
Retail prices rose 9.7% in April, the biggest increase since September 1981, with consumers paying more for almost all items at the grocery store, Statscan reported. Prices for starchy staple foods such as pasta and bread were among the biggest components pushing up prices.
According to Statscan, "The Russia-Ukraine conflict in late February has put price pressure on food products that use wheat." At the same time, "bad weather in some areas is also affecting food prices."
Statscan informed that they will change the way used car prices are calculated starting next month. This is expected to boost the percentage of inflation.
Shelter prices in April rose at the fastest rate since June 1983, when high housing costs and rising rents continued to drive profits, with the cost of mortgage interest rising in that month for the first time since April 2020.
Gasoline prices fell slightly in April from March. Still, consumers paid 36.3% higher at petrol stations in April than a year ago.
The typical measure of CPI, said to be the best measure of economic performance by the Central Bank of Canada rose to 3.2% from a revised 3.0% in March and topped analysts ’forecasts by 2.9%. The reduction in CPI was 5.1% and the median CPI was 4.4%.
The Canadian currency depreciated slightly against the US dollar by trading at 1.2807 against the US dollar, or 78.08 U.S. cents.
