Inflation in Canada - statistics & facts
Causes and drivers
By June 2022, the monthly inflation rate had reached 8.1 percent. The COVID-19 pandemic, during which demand for certain services declined, as well as the disruption of the supply chain, and labor shortages have indeed led to an increase in the prices of various goods and services, such as food, gasoline, motor vehicles, and furniture. In addition, the conflict between Russia and Ukraine has caused oil and gas prices to rise, and as cereal exports in both countries are expected to decline, the cost of some processed foods has also increased. However, rising inflation is not a recent phenomenon, and some factors were already contributing to it before the pandemic began. The financial crisis of 2008 and the trade wars between the United States and China, which resulted in the imposition of tariffs on Chinese products, led to higher prices for North American consumers.A rising concern among Canadians
In May 2024, inflation was still a growing concern for Canadians, even more so than for the rest of the world. This phenomenon represents a serious problem for most Canadian households, and has had a negative impact on various areas of daily life, such as vacations, the price of groceries, as well as that of gas. An important part of the Canadians surveyed in May 2023 felt that their incomes had not kept up with inflation and had increased at a slower pace. These financial difficulties were most prevalent in the Atlantic Provinces, among women and younger citizens, and among households with the lowest incomes. Some people even had difficulty affording food for their households.In fact, most Canadians had to take action to cope with inflation. Many began to cut back on food waste, to buy less expensive items at the grocery store, to spend less money on household items, entertainment or vacations, or to reduce their vehicle use. Nearly one-third of individuals said they had driven less in recent months, to cut back on spending, particularly in the Atlantic provinces and Saskatchewan.