Canadian inflation reaches 5.7% in 12 months

Inflation in Canada is on the roof. It was 5.7% in the first 12 months of February, the highest in 30 years, more than economists had expected. Mainly due to rising petrol and food prices.

This is the second consecutive month that prices have risen by more than 5 percent, the National Statistics Office said in a statement on Wednesday.

Trying to control inflation, For the first time since October 2018, the Bank of Canada has raised the guideline interest rate from 0.25% to 0.50% per annum in early March.

“Inflation is likely to reach 6% in March due to the recent rise in food prices and the reopening of the economy,” said Royce Mendes, an economist at Desjardins Bank.

Last February, drivers paid 32.3% more for petrol compared to the same period in 2021. In fact, the country has just emerged from the strong protests led by this union.

That’s not enough, food in stores rose 7.4% in February, the largest annual increase since May 2009, according to Statistics Canada.

The inflation process is linked to the rising cost of living facing the planet due to such factors. Supply chain, economic activity and the war between Russia and Ukraine.

* With information from AFP.