Canada inflation jumps to record-high at 4.7% since 2003

TRENTON, Canada

Canada's inflation rate soared to a nearly two-decade high at 4.7% for October, according to a Statistics Canada report Wednesday.

The rate was fueled by higher prices at the gas pumps, up a staggering 41-plus percent. The average price was CAN$1.42 per liter (US$1.13) Nov. 16. The lowest price per liter in 2020 was CAN96.3 cents (US71 cents). New vehicle prices are up 6.1%.

The inflation rate is the highest since 2003, but economic experts said the increase was cushioned only because it could have been worse.

"It's almost a relief in 2021 when hot inflation readings aren't even hotter than expectations," Bank of Montreal economist Doug Porter told the Canadian Broadcasting Corporation.

But while it is better than the latest inflation figure in the US, it is a steep increase.

"While perhaps not quite as eye-popping as the latest 6.2 percent U.S. headline inflation print, this still marks a massive upswing from inflation of just 0.7 percent a year ago," Porter said.

If energy prices are not factored in, the consumer price index would have seen an increase to 3.3% over October 2020.

Food prices have risen as well. A dozen eggs that cost $CAN2.69 (US$2.13) cents two months ago are now routinely over CAN$3.09 (US$2.44), a 15% increase.

Meanwhile meat prices have jumped by just under 10% but a Canadian breakfast staple - bacon - went up double that amount. Part of it is due to the pandemic playing havoc with the workforce.

"Labor shortages have slowed down production, ongoing supply chain challenges and rising prices for livestock feed continued to factor into higher prices for meat," StatsCan reported.

In fact, the cost of everything is going up fast.

Packaging material and transportation costs have risen, while lumber prices soared as mill production slowed and building supply businesses had trouble getting stock.

And the end is not in sight.

"Supply disruptions remain acute and continue to impact a broad range of items," TD Bank economist Ksenia Bushmeneva told the CBC. "Energy prices remain a major contributor, but consumers are feeling the pinch seemingly everywhere: at grocery and clothing stores, car dealerships and at home."