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Canada’s annual CPI hit 40-year high in 2022

Canada’s Consumer Price Index (CPI) rose 6.8 per cent on an annual average basis in 2022, hitting a 40-year high, the national statistical agency said.

Statistics Canada said the price increases were broad-based in 2022 and higher energy prices contributed the most to headline inflation, reports Xinhua news agency.

Excluding energy, the annual average CPI rose 5.7 per cent in 2022.

Year-over-year price growth accelerated each month in the first half of the year, reaching a high of 8.1 percent in June, and slowed in the second half of the year.

The CPI rose 6.3 per cent year on year in December, following a 6.8 per cent increase in November, Statistics Canada said.

According to Statistics Canada, consumers paid 28.5 per cent more for gasoline on an annual average basis.

Crude oil prices rose as a result of global supply uncertainty and higher demand in response to the easing of Covid-19 restrictions, pushing prices at the pump higher.

Prices for fuel oil and other fuels rose 59.6 per cent on an annual average basis, following a 24.4 per cent gain in 2021.

Prices for food purchased from stores rose 9.8 percent in 2022, the fastest pace since 1981, after increasing 2.2 percent in 2021.

In the coming months, the relatively large month-over-month price movements that were observed from January 2022 to June 2022 will stop influencing the 12-month price movements in 2023.

The broad increase in prices, led by prices for energy products, in the first half of 2022 will have a downward impact on the year-over-year rate of consumer inflation through the first half of 2023 because higher prices from 2022 will be used as the basis for year-over-year comparisons, Statistics Canada said.

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