Thursday, August 28, 2025

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

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

Related News

Annual Inflation Jumps to 2.2% In March

Annual inflation levels across Canada jumped to 2.2% in March, largely due to the drop...

Thursday, April 22, 2021, 10:44:00 AM

Deutsche Bank Warns of Major Recession if Germany Halts Russian Oil and Gas Imports

Germany is slated for a steep recession if it doesn’t reverse course on halting energy...

Tuesday, April 5, 2022, 04:21:00 PM

Argentina Inflation Breaches 100%

Argentina’s annual inflation rate surpassed 100% in February, according to the country’s statistics agency, the...

Wednesday, March 15, 2023, 09:36:20 AM

Consumer Prices Continue to Rise in Canada as Inflation Becomes Entrenched

Canadians continue to pay more for goods and services with each passing month, even as...

Wednesday, July 20, 2022, 10:05:11 AM

Euro Inflation Soars Past Record as ECB Struggles to Maintain Transitory Narrative

Inflation across the euro area surpassed previous record levels in December, eroding at consumer sentiment...

Monday, January 10, 2022, 02:46:00 PM