Reduced supply and increased demand drive CPI up
Inflation crept higher in March as Canada’s Consumer Price Index was 6.7% higher than March last year. All eight categories that are tracked by Statistics Canada increased in cost as the CPI recorded its largest increase since 1991, the year the Goods and Services Tax was introduced.
The cost of filling up at the pump was one of the key factors, as was higher hotel rates and the cost of housing in general. Fuel is a factor in shipping and transportation costs so the jump in gas prices results in higher bills for food, furniture and other goods.
The war in the Ukraine has significantly reduced the supply of oil and gas driving up prices. However, the lifting of pandemic restrictions has also increased demand for many services as people seek out in-person experiences.
The cost of filling up at the pump was one of the key factors, as was higher hotel rates and the cost of housing in general. Fuel is a factor in shipping and transportation costs so the jump in gas prices results in higher bills for food, furniture and other goods.
The war in the Ukraine has significantly reduced the supply of oil and gas driving up prices. However, the lifting of pandemic restrictions has also increased demand for many services as people seek out in-person experiences.
