Key Takeaways:
- Inflation rates are rising all over the world.
- In November, Canada’s inflation rate remained at 4.7 percent, unchanged from the previous month’s annual rate.
Statistics Canada’s data point, released on Wednesday morning, was in line with economist anticipations, tying October’s level, the most elevated inflation rate since 2003.
Inflation rates are skyrocketing around the world right now, thanks to a combination of record government spending, supply chain disruptions, and increased demand for consumer goods.
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In the United States, data released last week showed that the country’s inflation rate rose to a nearly 40-year high of 6.8 % last month. In decades, consumer prices are rising fastest, and incomes aren’t keeping up.
According to Statistics Canada, while the cost of living has risen by nearly 5% in the last year, income has only been increased by about half that amount or 2.8%.
However, according to Tu Nguyen of the consulting firm RSM Canada, wages should catch up soon.
“Inflation and wages typically have a time lag, with the latter being stickier and taking longer to shift. However, with a tight labour market and salaries already rising significantly for job hoppers, we will soon see wages rising to match inflation, “She stated.
According to the data agency, the most significant factors driving up the annual consumer price index were higher gasoline, furniture, and food prices.
In the year to November, gasoline prices increased by 43.6 percent. Meanwhile, grocery prices increased by 4.7%. This is the quickest rate of growth since January 2015.
Furniture prices increased 8.7 percent due to higher shipping costs. In addition, according to the data agency, the introduction of tariffs earlier this year may have contributed to increased upholstered furniture prices, which were up by more than 11% compared to a year ago.
“We haven’t seen inflation yet,” he said, “but it’s coming.” “We’re probably going to see a 10% to 15% price increase on our end going into next season.”
Frank Howard, the owner of Oshawa, Ont.-based Taunton Tire, says he may have to raise his prices by the same amount soon. He predicts that tire manufacturers will soon increase their prices by 10 to 15%. “Once again, that will have a significant impact on the consumer as well as the cost.”
Source: CBC News
