Canadians are currently living in the largest annual increase of the cost of living since GST was created. In March, Canada’s inflation rate jumped to 7.7 per cent which was far more than most economists were predicting. According to Statistics Canada, all eight categories of the economy that the data agency tracks rose.
The increases range from food and energy to shelter costs and transportation. Economist Royce Mendes of Desjardins Group said “The spike in prices over the month of March is the largest monthly increase since January 1991 when the goods and services tax was introduced.”
Transportation had the largest increase with 11.2 per cent in the past year. The main reason for that is the increase in gas which has risen 39.8 per cent since March of last year. Economists explained that “Price pressures across other areas of the economy are showing more heat both for goods and services, … Inflation is likely to remain above the Bank of Canada’s target range until 2023, crimping consumer purchasing power and driving interest rates higher.”
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