Canada’s inflation rate increased at its fastest pace in over 30 years amid persisting pressures of surging energy costs, strong consumer demand and the soaring housing market. Headline CPI—including food and energy—advanced to 5.1% annually. Excluding the more volatile food and energy the uptick was 3.5%.
For the month of January, the headline rate rose 0.9%, food prices advanced 1.4% and energy 3.1% Energy costs also drove the year-over-year surge, up 23.1%.
Inflation has become a concern for central banks around the world. The United States has seen sharp leaps in food and energy costs, and the annual inflation print increased to a four-decade high in January.
The Bank of Canada has previously announced it expects to hike rates at least four times in 2022.