Canada sees highest annual inflation rate since 1991

Canadians saw the highest rate of inflation in 30 years last month.

According to Statistics Canada, inflation rose to 4.8 per cent in December 2021, a number that hasn’t been seen since September 1991.

Reasons for the increase were the COVID-19 pandemic, supply chain disruptions, rebounding energy prices, unfavourable weather conditions, and rising housing costs.

Causing some of the growths were rises in grocery prices, durable goods and gas.

Grocery prices continued to climb in December, rising to 5.7 per cent year over year. That is the largest yearly increase since November 2011.

Prices for durable goods increased by 5.7 per cent also. Compared to December 2020, consumers who purchased a new vehicle December paid 7.2% more as the global shortage of semiconductor chips continued to elevate prices. Consumers who purchased household appliances, like refrigerators and freezers and laundry and dishwashing appliances, paid 8.9% more last month. This was the largest yearly gain since June 1982.

Those who were looking to buy a home and homeowners both saw increases. Increases in construction costs, mainly due to higher prices for building supplies, Canadian homeowners paid 9.3% more for home and mortgage insurance in December 2021 compared with December 2020.

Despite a month-over-month dip in prices at the gas pumps with demand dampened by renewed public health restrictions related to the Omicron, gasoline prices were still up 33.3 per cent year-over-year in December.

Prices rose in all provinces in 2021, with Saskatchewan seeing an increase of 2.6 percent, the lowest among all provinces. Saskatchewan also posted the lowest inflation rate last month at 3.5 per cent.

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