December Consumer Prices Soared to the Highest in Three Decades

Consumer prices continued to weigh down heavily on Canadians’ pocketbooks, as inflation soared to the highest level in three decades last month.

Latest Statistics Canada data showed that CPI jumped by another 4.8% from December 2021, following an annual increase of 4.7% in the month prior. On a monthly basis, however, prices fell 0.1%, marking the first decline since December of last year, due to a drop in gasoline prices amid lower demand. Core CPI, which does not account for gasoline, was up 4% year-over-year.

Indeed, it appears that ongoing supply chain disruptions and adverse climate conditions continue to push prices for various consumer goods higher, as all eight of the major CPI components increased last month. Durable goods, including vehicles and household appliances also saw higher prices last month, while elevated construction costs added to increasing insurance costs for mortgages and homes.

The cost of groceries continued to increase in December, climbing 5.7% from the year before and marking the sharpest annual increase since November 2011. Prices for fresh fruit and vegetables were up due to poor weather conditions in growing regions as well as supply chain disruptions, while bakery products saw prices rise 4.7% year-over-year amid drought conditions plaguing Western Canada for much of last summer.

The CPI figures will reinforce the market’s expectations that the Bank of Canada will begin to raise historically low borrowing costs as early as next week. As cited by Bloomberg, investors are forecasting at least 6 rate hikes in 2022.

Information for this briefing was found via Statistics Canada and Bloomberg. 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.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Inflation Is Here: Gold Will Benefit – The Daily Dive feat Russell Starr

Today on the Daily Dive, we see the return of Russell Starr, a frequent commentator...

Tuesday, March 2, 2021, 01:30:00 PM

Canadian CPI Shoots to 6.7% in March

Canadians continued to pay significantly more for goods and services last month, as inflationary pressure...

Wednesday, April 20, 2022, 11:44:00 AM

Bank of Canada Prepares to Aggressively Tackle Inflation

The show must go on! Despite growing uncertainty surrounding geopolitical tensions in eastern Europe and...

Saturday, March 26, 2022, 01:05:00 PM

75 BASIS-POINTS: Fed Embarks on Biggest Hike Since 1994 to Tame Inflation

In an attempt to preserve its rapidly-plummeting credibility, the Fed hiked rates by a shocking...

Wednesday, June 15, 2022, 03:50:19 PM

CMHC: Canada Could Face A “Mild Recession” In A 3.5% Interest Rate Scenario

The Canadian economy might be headed for a “mild recession” should the Bank of Canada...

Tuesday, July 12, 2022, 02:21:00 PM