Design district floor plan.Canada’s CPI grew by 7.6% in July. Due to a slowdown in oil price growth, the country’s consumer price index (CPI) rose 7.6% in July from a year earlier, down from last month’s historic high.Please Visit: Design district floor plan to Get Your VVIP Registration Today!
Earlier, due to rising gasoline prices, Canada’s CPI rose 8.1 per cent in June from a year earlier, the highest level in 40 years and well above the central bank’s 2 per cent target. In response to a year of persistently high inflation, the Canadian central bank raised interest rates by 100 basis points in July after raising interest rates for three months in a row. This month’s CPI data are in line with the Bank of Canada’s inflation estimate. Canada’s central bank expects the country’s average inflation rate to be about 8% by the third quarter of 2022 before slowing down gradually.
In addition, the annual rate of core CPI, which excludes energy and food prices, rose to 5.5 per cent from 5.3 per cent in June, a record since 1990. Service sector inflation rose to 5.7 per cent. On average, consumer prices continued to rise faster than the 5.2 per cent year-on-year increase in hourly wages in July.
Many analysts believe that price pressures could still cause the central bank to raise interest rates sharply again. Tiff Macklem, governor of the Bank of Canada, also said in an article after the data was released that inflation was still “too high”. The central bank is “determined” to “eliminate” high inflation and bring it back to its 2% target.
While the slight decline in CPI is good news, suggesting that inflation in Canada may have peaked, Macklem insists it will take some time for prices to return to normal, especially since prices for goods and services are “still growing at a rate of more than 5 per cent”. Excluding oil prices, CPI rose 6.6 per cent in July from a year earlier, up slightly from 6.5 per cent in June.
Xiao Zhou, who is studying in Canada, said in an interview with the Southern Finance all Media Group that although he did not know exactly how much prices had risen, he felt that he had bought C $100 or C $200 in a casual visit to the supermarket. ” “when I go to Toronto now, I feel that the price is even more expensive,” Xiao Zhou said.
According to the data, Canadian food prices rose 9.2% in July from a year earlier, up 0.9% from a month earlier. In terms of breakdown, store food prices rose 9.9% in July from a year earlier. Baked goods rose 13.6%, dairy products 8.9%, vegetable prices 8.8%, and meat prices 6.1%. Other food categories with faster price increases include eggs (15.8%), coffee and tea (13.8%), fruits (11.7%), preserved fruits and fruit products (10.4%), sugar (9.7%) and non-alcoholic beverages (9.5%).
July is the peak season for tourism, and travel costs in Canada continue to rise, driven by strong demand. Domestic ticket prices in Canada are up 25.5% from last month. The price of accommodation has increased by 47.7% compared with the same period last year. Among them, Ontario had the largest year-on-year increase in accommodation prices, with 70 per cent, followed by Nova Scotia (64.4 per cent) and British Columbia (49.8 per cent).
Canadian economist Karyne Charbonneau said in a research note on Tuesday that inflation in Canada has slowed, but the acceleration of core inflation, excluding food and energy, has become a concern for the Bank of Canada.
Inflation in Canada and the United States is rising almost at the same time. Us CPI, announced last week, fell more than expected in July, rising 8.5 per cent from a year earlier, down from 9.1 per cent in June. For both countries, falling gasoline prices are the main reason for cooling inflation. Gasoline prices in Canada fell to 35.6% from a 54.6% rise in June, largely curbing the rise in CPI.
However, for local people, the impact of rising energy prices has not been mitigated. Several respondents said they had the most obvious feelings about high oil prices. Xiao Chen, who lives in Toronto, said in an interview with Southern Financial Media that now, everyone is “stingy” when they go out and try not to drive too far, “mainly because oil prices have risen a lot.”
