Calgarians feeling the financial pinch as inflation reaches 5.7 per cent

It’s been 31 years since Canada saw inflation levels at 5.7 per cent, but Statistics Canada data says inflation is creeping up.

Gasoline and grocery prices have skyrocketed this year, with statistics Canada saying gasoline was up 32.3 per cent in February compared to one year ago and 6.9 per cent from January.

University of Calgary economist Trevor Tombe says with the uncertainty of the war in Ukraine, that is driving up oil prices, and the real estate market facing a boom, it’s unclear on when the major jump will stop.

“Gasoline alone added 1.1 percentage points of that 5.7,” he said.

“So if it weren't for gas it would have been 4.6 and then you add in other energy costs like home heating and so on.”

Maria Cruz retired five months ago. She says inflation is impacting her deeply.

Paying more at the grocery store and gas pump, she says her utility costs are also skyrocketing.

“A $512 my bill for utilities from $330 to $500,” she said.

She says her most recent bill was $411.00.

“If inflation goes up, salary should be going up,” said Cruz.

“For the young generation going to be very hard to to live even if this person is a single person.”

She says the higher costs around everything need to be looked at by governments, offering a helping hand.

“Because retirement is beautiful when you have enough money to live and to spend it but when you're waiting for your pay check, when in retirement, it is very small amount.”

Grocery store prices were up 7.4 per cent for the largest yearly increase since May 2009, pushed higher by rising fuel costs that are being passed on to shoppers.

Alberta’s inflation for February was 5.5 per cent, while Calgary was up one percentage point from January to 6.4 per cent.

Shelter costs, which include prices for homes and rental units, rose at their fastest pace in forty years. Tombe says the 4.2 per cent year-over-year increase leaves a lot of unanswered questions.

“They've risen at a faster rate than at any point since 1983,” said Tombe.

“And so what is behind the rapid increase in real estate prices, not just in Canada, but throughout the developed world?”