Inflation in Canada continues to climb, with StatCan this morning reporting that the Canadian consumer price index rose to 6.8% on a year over year basis during the month of April 2022. The figure compares to 6.7% seen for the month of March, indicating consumers are not yet out of the woods when it comes to soaring prices.
There does appear to be some respite in the data however, with the CPI rising 0.6% in April, after a significant 1.4% rise experienced in March, suggesting the rate might finally be starting to slow.
Despite this, the trouble for consumers is that the largest price increases were seen in areas that greatly impact the average every day consumer. The cost of food continues to skyrocket, with food purchased from stores climbing an astounding 9.7% on a year over year basis – however, its not like consumers weren’t already aware they were feeling the pinch.
Diving into the details, a deeper break down of rising food prices was provided by the agency, which include:
- Cereal Products: +13.9%
- Coffee: +13.7%
- Bread: +12.2%
- Meat: +10.1%
- Fresh fruit: +10.0%
- Fresh vegetables: +8.2%
The rising prices within the food industry were blamed on the invasion of Ukraine by Russia in February, as well as poor weather that has been present in growing regions. Higher input costs for farmers in the area of fertilizer and natural gas have also impacted the segment.
Gasoline prices have also continued to significantly the figure, with CPI-ex gasoline coming in at 5.8%. CPI-ex both food and energy meanwhile came in at 4.6% on a year over year basis. Gasoline has increased 36.3% on a year over year basis for the month of April, versus the 39.8% seen in March.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
