The annual Canadian inflation rate hit 6.7% in March – the fastest year-over-year increase in over 31 years.
Manitoba’s rate in March was 7.4% up from 6.1 in February.
Prices for food, housing, and gasoline have all increased dramatically. Grocery store prices rose 8.7% year-over-year with the largest annual increase in dairy and egg prices since February 1983. New home prices also rose in March by 12.9% – and we all know that gasoline prices have skyrocketed, and are not done climbing yet.
By the way, hourly wages have also increased by about 3.4%, but that’s just not enough to keep pace with inflation.
Last week, the Bank of Canada increased its key policy rate by half a percentage point, raising the benchmark interest rate to 1.0% with warnings that more rate hikes are to come this year. Rising interest rates are expected to encourage saving and curb borrowing and spending, helping cool Canada’s housing market and the cost of goods. As demand goes down prices tend to rise more slowly, or even edge down, easing inflation.
Statistics Canada also has the numbers for each province. (previous month in brackets):
— Newfoundland and Labrador: 6.3 per cent (5.1)
— Prince Edward Island: 8.9 per cent (7.4)
— Nova Scotia: 6.8 per cent (5.7)
— New Brunswick: 7.4 per cent (6.0)
— Quebec: 6.7 per cent (5.4)
— Ontario: 7.0 per cent (6.1)
— Manitoba: 7.4 per cent (6.1)
— Saskatchewan: 5.7 per cent (4.7)
— Alberta: 6.5 per cent (5.5)
— British Columbia: 6.0 per cent (4.7)
