Growth continued in December, when the consumer price index rose 4.8% compared to the same period in 2020. Growth partly driven by transport, since without gasoline, the increase was 4%.
In December, Statistics Canada reported that annual inflation had reached 4.7% in November 2021 compared to the same period a year ago. It was an 18-year high.
Unsurprisingly, this inflationary surge is due to the pandemic, the main factor behind the increase in the prices of goods and services, writes Statistics Canada.
In 2021, inflationary pressures stemmed from a combination of widespread global supply chain constraints and pent-up consumer demand as the economy recovered
, underlines the federal agency.
In short, as vaccines have become available,2020″,”text”:”Canadians were able to go out, shop, eat out and travel more than in 2020″}}”>Canadians were able to go out, shop, eat out and travel more than in 2020, we explain.
Statistics Canada notes that, at the same time, global constraints have disrupted supply chains and therefore restricted the supply of goods and services: shortages of inputs, production bottlenecks, congestion at major ports, increased costs, longer delivery times, etc.
In 2021, Canadians had to pay 2.5% more for their food than in 2020. Transportation and accommodation also increased by 7.2% and 3.9% respectively.
Rising energy prices are supporting headline inflation, the federal agency said. The price of crude oil has a direct impact on the price Canadians pay for products such as gasoline, fuel oil or other fuels.
Canadian motorists had to pay 31.2% more at the pump on an average annual basis in 2021, due to gasoline prices which posted their fastest growth since 1981 (+36.1%).
But this increase also has a causal link on the prices of several other consumer products, explains the federal agency.
The east of the country hardest hit
Some Canadian provinces have been hit harder by price increases in 2021. This is the case for the Maritimes, which is explained by the influx of people from other provinces
, supports Statistics Canada.
Thereby,%) and Nova Scotia (+4.1%) recorded the highest inflation rates, while price growth in all Atlantic provinces exceeded the national average”,”text”:”Prince Edward Island (+ 5.1%) and Nova Scotia (+4.1%) recorded the highest inflation rates, while price growth in all Atlantic provinces exceeded the national average”}} “>Prince Edward Island (+5.1%) and Nova Scotia (+4.1%) recorded the highest inflation rates, while price growth in all provinces of the Atlantic exceeded the national average of 3.4%.
In Quebec and Ontario, price increases were slightly higher than this national average, with respective growth rates of 3.8% and 3.5%.
Conversely, the western provinces of the country were less hard hit by inflation. Saskatchewan is the one with the weakest price growth, with a rate of 2.6%.
Consumer price growth has spared few countries around the world in 2021. In the United States, Canada’s largest trading partner, inflation hit 7% last year, unheard of for nearly 40 years.