Canada’s rate of inflation in April was 6.8 %, according to Statistics Canada, with food, gas and shelter costs driving the consumer price index (CPI) up.
In B.C., rent costs rose 6.4% compared to April 2021, which is higher than the country-wide increase of 4.5%.
The main contributors to inflation are gasoline (36.3%), accommodation expenses, such as real estate costs (17.2%) and homeowners’ replacement costs, such as construction costs to build a new home (13%).
Excluding gasoline, the CPI rose 5.8% year over year in April, after a 5.5% gain in March.
The cost of food is also hammering consumers.
Canadians paid 9.7% more in April for food purchased from stores compared with April 2021, according to Statistics Canada.
“This increase, which exceeded 5% for the fifth month in a row, was the largest increase since September 1981. For comparison, from 2010 to 2020, there were five months when prices for food purchased from stores increased at a rate of 5% or higher,” noted the agency.
“Basics, such as fresh fruit (+10.0%), fresh vegetables (+8.2%) and meat (+10.1%), were all more expensive in April compared with a year earlier. Prices for starchy foods such as bread (+12.2%), pasta (+19.6%), rice (+7.4%) and cereal products (+13.9%) also increased. Additionally, a cup of coffee (+13.7%) cost more in April 2022 than in April 2021.”
Russia’s invasion of Ukraine and poor weather explain most of these costs, the agency said in a report published online May 18.
Downward factors included mortgage interest costs (-4.4%); however, this will soon change as the Bank of Canada increased its overnight rate 0.5% in March and is expected to increase rates again on June 1. It is these rate increases that are supposed to curb inflationary costs.
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