Inflation in Canada rose to 6.7 percent in March, much more than economists had expected, and a full percentage point higher than its 30-year high in February.
The Statistical Office of Canada said on Wednesday that all eight categories of the economy tracked by the data agency have grown, from food and energy to accommodation and transportation costs.
“The rise in prices in March is the largest monthly increase since January 1991, when the tax on goods and services was introduced,” said economist Royce Mendes of the Desjardins Group.
While the price of almost everything is growing rapidly, transportation costs are leading, rising 11.2% in the last year. A major reason for this increase is the 39.8% increase in petrol costs since March last year.
Gasoline prices rose in March, largely due to Russia’s invasion of Ukraine, which plunged global supplies into chaos. Although they have fallen slightly since then, at one point last month many Canadian cities saw their average price per liter of petrol reach $ 2 for the first time.
High gas prices have a huge impact on headline inflation, as delivery and transport costs add to the cost of everything else, from food bills (up to 8.7%) to the price of durable goods such as furniture (up 13, 7%) and even plane tickets (by 8.3 percent)
“I think a lot of Canadians were aware of that when they were out in March,” RBC economist Josh Nye told CBC News in an interview.
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