Canada’s inflation rate climbs to highest level in a decade as cost-of-living increases for Albertans
Albertans are continuing to recover financially from the COVID-19 pandemic, but the price of basic goods isn’t providing any sort of reprieve as inflation rates heat up.
Canada’s inflation rate increased to 3.6 per cent in May, which is the fastest pace in a decade, according to Statistics Canada. The data agency notes that the price of several goods is increasing much faster than usual, which includes everything from home renovations, energy, groceries, and other consumer products.
The cost of lumber for example has soared, according to Chicago Lumber Futures, from just over $400USD per thousand board feet at the beginning of the pandemic, to now as high as $1,700USD per thousand board feet.
Meanwhile, gasoline prices have soared 43 per cent this year with the average cost per litre in Calgary coming in at around $1.33.
The price of traveller accommodation also rose up 6.7 per cent, which is the highest rate seen since the pandemic began.
The increases are hitting consumers harder than expected, but also smaller businesses like Urban Butcher.
“The more in demand cuts like the grilling cuts and steaks are seeing a much bigger jump in upwards of the 10 to 15 per cent range,” said store Manager, Shane Eustace.
“A lot of it is supply and demand, we’re subject to market forces even though we’re a naturally raised beef store that deals with smaller suppliers.
Eustace adds that cattle and feed prices in the United States have created a concern as his store doesn’t have the buying power of a big box retailer.
“We try to model where those prices are going and try to provide alternatives and so on to find ways to give people creative meal ideas in spite of the price.”
Several shoppers CTV News spoke with outside of grocery stores on Thursday agree that they’re now changing their habits and shopping more strategically.
A new poll from Angus Reid Institute also found that 92 per cent of Canadian shoppers expect their grocery bill to climb in the next six months, while just one per cent thought their costs would drop in that time frame.
NO NEED TO OVERREACT: ECONOMIST
While the 3.6 per cent increase in Canada’s inflation rate represents a spike much larger than the Bank of Canada’s targeted one to three per cent range, some economists are suggesting there’s no need to panic.
Associate Professor in the University of Calgary’s Department of Economics Trevor Tombe says the inflation rate in May is measured relative to where it was in May of last year when the pandemic began.
“That’s when prices fell a lot actually in April and May related to those disruptions from COVID so this is an increase from a lower initial level so we still are behind where we would have been in terms of price increases if COVID never happened,” Tombe said.
“The biggest factor pushing that 3.6 per cent inflation rate is gasoline, which is up over 40 per cent for the year, so without gasoline price increases, the inflation would have been 2.5 per cent which is within that one to three per cent target range that we have in Canada.”
Tombe adds that he expects inflation in the future to remain right where the Bank of Canada wants it to be around the two per cent range.
“Gasoline is an interesting one to watch because if oil prices fall then pretty soon we might see inflation numbers on the lower end of that target range.”
CTVNews.ca Top Stories
There's actually no such thing as vegetables. Here's why you should eat them anyway
The rumours are true: Vegetables aren't real — that is, in botany, anyway. While the term fruit is recognized botanically as anything that contains a seed or seeds, vegetable is actually a broad umbrella term.
BREAKING Israeli forces seize Rafah border crossing in Gaza, putting ceasefire talks on knife's edge
Israeli tanks seized control of Gaza’s vital Rafah border crossing on Tuesday as Israel brushed off urgent warnings from close allies and moved into the southern city even as ceasefire negotiations with Hamas remained on a knife’s edge.
The Met Gala was in full bloom with Zendaya, Jennifer Lopez, Mindy Kaling among the standout stars
The Met Gala and its fashionista A-listers on Monday included Jennifer Lopez, Zendaya and a parade of others in a swirl of flora and fauna looks on a green-tinged carpet lined by live foliage.
Canadian cadets rock mullets and place second at U.S. military competition
Sporting mullets, Canadian Armed Forces officer cadets placed second in an annual military skills competition in the U.S.
'It looked so legit': Ontario man pays $7,700 for luxury villa found on Booking.com, but the listing was fake
An Ontario man says he paid more than $7,700 for a luxury villa he found on a popular travel website -- but the listing was fake.
Noelia Voigt resigns as Miss USA, citing her mental health
Noelia Voigt, who was crowned Miss USA in November 2023, has announced she is resigning from her role, saying the decision is in the best interest of her mental health.
Putin begins his fifth term as president, more in control of Russia than ever
Vladimir Putin began his fifth term Tuesday as Russian leader at a glittering Kremlin inauguration, setting out on another six years in office after destroying his political opponents, launching a devastating war in Ukraine and concentrating all power in his hands.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.
Mediterranean staple may lower your risk of death from dementia, study finds
A daily spoonful of olive oil could lower your risk of dying from dementia, according to a new study by Harvard scientists.