Inflation in Canada hits record high not seen since 1983
The consumer price index rose 7.7% in May in the country, according to Statistics Canada, marking an inflation record not seen since January 1983. It is also an increase from the rise of 6.8% recorded in April.
In Quebec, the increase is 7.5% compared to May 2021 and 1.4% compared to last April. The provinces with the highest inflation rates are New Brunswick (8.8%), Nova Scotia (8.8%), Manitoba (8.7%) and British Columbia (8. 1%).
Unsurprisingly, the cost of gas is one of the main factors fueling this record level of inflation in Canada and Quebec. But even without gasoline, the increase in the consumer price index would still have reached 6.3% in the country.
The acceleration in growth in May was mainly attributable to higher gasoline prices, which rose 12.0% compared to April 2022 (-0.7%). Rising prices for services, such as hotels and restaurants, also contributed to the increase. Food and shelter prices remained high in May, with the same year-over-year growth rate.
Double the wage growth
This significant rise in inflation will be a heavy blow to consumers’ wallets. Also according to Statistics Canada, wage growth was only 3.9% over the same period. The cost of living is therefore rising almost twice as fast as wages.
The Conservative Party did not hesitate to shoot arrows at the attention of the government of Justin Trudeau. In a press release, the party accuses the Trudeau government of being partially responsible for inflation because of its “irresponsible spending”.
“Less than a week after the Deputy Prime Minister presented her so-called solution to the inflation crisis, the problem is only getting worse with prices soaring 7.7 percent – the biggest increase for nearly of four decades”, underlines the party.
Last Thursday, Finance Minister Chrystia Freeland essentially relied on the measures unveiled in the federal budget to counter the rising cost of living. His speech, delivered to Toronto business people, left many hungry.