The Consumer Price Index (CPI) rose 3.4% in 2021, representing its fastest growth since 1991, according to the latest data from Statistics Canada.
The federal agency thus notes that due to the easing of sanitary measures during the year, the prices of services consumed outside the home have started to recover from the low observed in 2020. Thus, prices increased in all provinces in 2021.
The CPI increased by 3.8% in Quebec in 2021, above the Canadian level.
For the month of December in the province, the index fell by 0.2 points to stabilize at 5.1%.
The year-over-year inflation rate for the country as a whole also fell 0.1%, after rising 0.2% in November, to 4.8%. “This is the first monthly decline since December 2020,” Statistics Canada noted.
It is the inhabitants of Prince Edward Island who have to deal with the worst inflation rate in the country, which reached 6.7% over one year.
Food prices continued to rise in December and were up 5.7% year-on-year. This is the largest increase since November 2011, according to data from the federal agency.
The increase in the price of fresh fruit, estimated at 5.6%, is said to be due to “adverse weather conditions in producing regions” as well as “disruptions in the supply chain”.
Also, prices for bakery products rose 4.7% year over year, mainly due to the drought that hit during the summer, which reduced the yield of wheat crops .
Year over year, durable goods prices rose at a faster pace in December (+5.7%) than in November (+5.5%). Thus, consumers who bought a new vehicle in December paid 7.2% more than those who made such a purchase in December 2020, “the global shortage of semiconductor chips having continued to put pressure on the rise in prices,” explained Statistics Canada.
Consumers who bought appliances, such as refrigerators and freezers (+13.9%) and washers, dryers and dishwashers (+10.4%), paid 8.9% more in December 2021, compared to December 2020.
“This is the highest annual increase since June 1982,” it said. This increase is notably attributable to “the increase in demand in the wake of disruptions in the global supply chain”.
Due to increases in construction costs, homeowners paid 9.3% more in December 2021 than in December 2020 for home and mortgage insurance.
The rise in gasoline prices recorded in December (+33.3%) was lower than that observed in November (+43.6%). Thus, on a monthly basis, motorists paid less at the pump (-4.1%), which corresponds to the largest drop since April 2020.
“The tightening of public health restrictions in response to the new Omicron variant has put pressure on gasoline demand,” said Statistics Canada.
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