۴ý

Business

    • Canada's inflation nears 40-year high as gas prices soar

    Share
    OTTAWA -

    Soaring gas prices helped the annual inflation rate in May soar to its highest level in nearly 40 years, as the rising cost of living for Canadians squeezed household budgets and bolstered expectations the Bank of Canada will opt for a supersized interest rate hike next month.

    said Wednesday its consumer price index in May rose 7.7 per cent compared with a year ago, the fastest pace since January 1983 when it gained 8.2 per cent. That's up almost a percentage point from April's 6.8 per cent gain.

    TD Bank managing director Leslie Preston said a generation of Canadians is experiencing high inflation for the first time.

    “If you aren't over 40, you have never lived through inflation like this, and unfortunately, we are not expecting much of a reprieve going forward,” Preston wrote in a report.

    The May reading came as energy prices rose 34.8 per cent compared with a year ago with gasoline prices up 48.0 per cent compared with a year ago. Excluding gasoline, the annual inflation rate in May rose to 6.3 per cent compared with 5.8 per cent in April.

    The Bank of Canada has raised its key interest rate target three times so far this year to bring it to 1.5 per cent in an effort to bring inflation under control.

    It has also said it is prepared to “act more forcefully” if needed, leading to speculation by economists that it could raise rates by three-quarters of a percentage point next month, matching a move by the U.S. Federal Reserve last week.

    Desjardins chief economist Jimmy Jean said more than three quarters of the components of inflation were up more than three per cent, the top end of the Bank of Canada's target range.

    “We have a record low unemployment rate, rising wages, so an economy that is really above its current capacity and that's really in the in the backyard of central bankers,” Jean said.

    “You could argue that there's nothing we can do about supply chains and the pandemic and you know all those supply shocks that have happened, but when it comes to domestic demand and there being too much demand for the level of supply that there is, that's really their responsibility.”

    The average of the three core measures of inflation that are closely watched by the Bank of Canada rose to 4.73 per cent in May compared with 4.43 per cent in April.

    Bank of Canada senior deputy governor Carolyn Rogers said Wednesday that inflation is hurting Canadians and making things unaffordable.

    “We know inflation is keeping Canadians up at night, it's keeping us up at night, and we will not rest easy until we get it back to target,” Rogers said at an event in Toronto.

    “We've been clear all along, the economy's in excess demand, inflation's too high, rates need to go up.”

    In May, Statistics Canada said the price for food bought at stores rose 9.7 per cent compared with a year ago, matching the April increase, as the cost of nearly everything in the grocery cart went higher.

    The cost of edible fats and oils gained 30.0 per cent compared with a year ago, its largest increase on record, mainly driven by higher prices for cooking oils. Fresh vegetable prices rose 10.3 per cent.

    The cost of services in May also rose 5.2 per cent compared with a year ago, up from a gain of 4.6 per cent in April, as Canadians travelled and ate in restaurants more often.

    Prices for traveller accommodation gained 40.2 per cent compared with a year ago, while the price of food purchased from restaurants gained 6.8 per cent.

    Royal Bank assistant chief economist Nathan Janzen said while a lot of the growth is coming from higher prices for energy and food, the cost pressures are broadening across a wider array of goods and services.

    He said the risk when price pressures creep across a broader set of goods and services is that consumer and business price expectations become unanchored,

    “When that happens, that's an environment where it's much more difficult for central banks to get inflation back under control,” he said.

    - With files from Ian Bickis in Toronto.

    This report by The Canadian Press was first published June 22, 2022

    CTVNews.ca Top Stories

    NEW

    NEW

    The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

    Canada

    • The Professional Institute of the Public Service of Canada is now joining the Canadian Association of Public Employees (CAPE) in calling on the Standing Committee on Government Operations and Estimates to conduct a "thorough investigation.

    • A new report suggests that Canadians' exposure to a radioactive gas is increasing, putting millions of people at a higher risk of developing lung cancer.

    • A man who fired at least 19 gunshots at an RCMP detachment in northern British Columbia, narrowly missing officers inside, has won a reduced prison sentence from the province's highest court, which ruled the sentencing judge failed to fully weigh the man's mental illness at the time.

    World

    Politics

    Health

    Sci-Tech

    • A meteor lit up our region's sky last night – with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.

    • The estimated population of North Atlantic right whales increased in 2023, but a group of international marine scientists say human behaviour still poses a significant threat to the critically endangered species.

    Entertainment

    Business

    Lifestyle

    • The Radium Hot Springs in British Columbia's Kootenay National Park has undergone a $29-million makeover.

    • A Manitoba company competed against the cream of the crop at the world's largest dairy expo and came out the big cheese.

    Sports

    Autos

    Local Spotlight

    A meteor lit up our region's sky last night – with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.

    Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.

    A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.

    A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.

    A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.

    Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.

    Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.

    The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that – and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.

    A Moncton, N.B., home has been donated to the Friends of The Moncton Hospital Foundation and will be transformed into a resource hub for people living with cancer.

    • A man who fired at least 19 gunshots at an RCMP detachment in northern British Columbia, narrowly missing officers inside, has won a reduced prison sentence from the province's highest court, which ruled the sentencing judge failed to fully weigh the man's mental illness at the time.

    • An oil salvage operation is underway on the fragile wreckage of a U.S. army transport ship that sank almost 80 years ago off coastal British Columbia in a race to head off an eruption of thousands of litres of oil that a coast guard official says is "near imminent."

    • Ken Swain has a major mess on his hands.

    • The federal government says it can’t wait any longer for Ontario to end encampments in its cities and will offer money directly to municipalities, including Toronto, to fix the problem.

    • Police are asking for the public’s help after a teenage boy was dropped off at a hospital in York Region and died a short time later.

    • Seventeen cows died after a semi-truck rolled over in south Calgary. A video posted to Reddit shows the semi-truck driving on an off-ramp from Stoney Trail onto Macleod Trail when it tips over onto its side and slides off the road.

    • Calgary police say thousands of dollars worth of stolen goods and a loaded shotgun were seized from an encampment in the community of Ogden.

    • A new report suggests that Canadians' exposure to a radioactive gas is increasing, putting millions of people at a higher risk of developing lung cancer.

    • Passengers at the Ottawa International Airport (YOW) will not be required to remove their laptops and liquids from carry-on-bags for screening, thanks to a new CT X-ray screening technology.

    • The Professional Institute of the Public Service of Canada is now joining the Canadian Association of Public Employees (CAPE) in calling on the Standing Committee on Government Operations and Estimates to conduct a "thorough investigation.

    • Montreal Mayor Valerie Plante will not be seeking reelection.

    • The two environmental activists who climbed to the top of the Jacques Cartier Bridge early on Tuesday morning in Montreal have been charged with mischief and resisting or obstructing a peace officer.

    • As the case of the Bedford school, where teachers created a climate of terror, has brought the debate on secularism to the fore, Quebec Solidaire (QS) is joining the Parti Québécois (PQ) in calling for an end to the funding of religious schools in the province.

    • WEATHER

      WEATHER

      Cool mornings and mild afternoons through the rest of this week in Edmonton and area.

    • Edmonton has been named one of the top cities in Lonely Planet’s "Best in Travel" for 2025.

    • Hockey fans, along with their lawn chairs, cozy blankets and a deep appreciation for the Edmonton Oilers, began lining up early Wednesday morning for a team autograph session in West Edmonton Mall that evening.

    • NEW

      NEW

      The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

    • The Nova Scotia government says it plans to reduce the province's harmonized sales tax (HST) rate by one percentage point next year.

    • After a stretch of fair, warm late October days, a change in the weather arrives for the Maritimes Thursday into Friday.

    • Winnipeg police are working to crack down on dangerous driving and stunt driving throughout the city.

    • The Manitoba government is looking to add more liquor outlets inside food and grocery stores.

    • An armed man was restrained by customers after he attempted to rob a Winnipeg restaurant on Monday.

    • The Regina Police Service (RPS) and the Saskatchewan Coroners Service have concluded the death of a man on Robinson Street on Oct. 22 is a “non-criminal” matter.

    • Candidates across Saskatchewan are making their final pitches to potential voters as the 2024 election campaign is quickly approaching its end.

    • More residents in Saskatchewan say it’s time for a federal election to be called than in any other province, a new poll from the Angus Reid Institute shows.

    • Prosecutors are arguing a man who stabbed a professor and two students in a University of Waterloo gender studies class last year should face a lengthy sentence because of the attack's lasting impact on campus safety and security.

    • A man is miraculously alive after driving his pickup truck through the fence and down a 150-foot embankment at Hawk Cliff in near Port Stanley, Ont.

    • With the war in Ukraine still going on and Saskatchewan now home to hundreds of newcomers fleeing the attacks, there’s been a resurgence of a youth group here in Saskatoon.

    • Saskatoon Public Library workers are in a strike position following the rejection of a tentative agreement with the employer.

    • Candidates across Saskatchewan are making their final pitches to potential voters as the 2024 election campaign is quickly approaching its end.

    • Greater Sudbury has ended the employment of CAO Ed Archer, Mayor Paul Lefebvre announced suddenly Tuesday evening

    • Police have confirmed the body of an employee who died at a Walmart in Halifax over the weekend was found in a walk-in oven.

    • A man is miraculously alive after driving his pickup truck through the fence and down a 150-foot embankment at Hawk Cliff in near Port Stanley, Ont.

    • Police said the house is believed to be empty and abandoned and it's not known yet if the driver of the truck is injured.

    • On Oct. 18, London police were contacted by Toronto Police Service requesting help to find a Toronto man wanted for multiple robbery and firearms related offences.

    • A 34-year-old motorcyclist has died following a collision in Barrie’s south end on Tuesday.

    • A Wasaga Beach woman is celebrating her first big win with the lottery after matching six of seven Encore numbers in exact order in the Sept. 13 Lotto Max draw.

    • Provincial police were summoned to Howdenvale Road in South Bruce Peninsula by a complaint about a possibly impaired driver Saturday.

    • Windsor police are looking to identify four suspects after a pizza delivery driver was allegedly robbed and assaulted.

    • A new mental health and addictions service inventory is launching for those looking for help with mental health and addition in Windsor and Essex County.

    • Chatham-Kent is set to distribute Cyanokits to the community.

    • A man who fired at least 19 gunshots at an RCMP detachment in northern British Columbia, narrowly missing officers inside, has won a reduced prison sentence from the province's highest court, which ruled the sentencing judge failed to fully weigh the man's mental illness at the time.

    • An oil salvage operation is underway on the fragile wreckage of a U.S. army transport ship that sank almost 80 years ago off coastal British Columbia in a race to head off an eruption of thousands of litres of oil that a coast guard official says is "near imminent."

    • Green Leader Sonia Furstenau is set to meet the media for the first time since British Columbia's indecisive election on Saturday, amid speculation about a possible minority government.

    • Dave Lindsey began growing giant pumpkins to bring a bit of magic to his grandkids' Halloween.

    • A U.S. District Court judge in Montana has sentenced a 27-year-old man from Kelowna, B.C., to 18 months in prison for using fake names to buy guns with the aim of selling them in Canada.

    • Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.

    • A proposed coal mine — not tourism — is critical in revitalizing southwestern Alberta communities along the edge of the Rockies, a group in favour of a controversial project maintains.

    • Alberta Premier Danielle Smith says she's waiting for NDP Leader Naheed Nenshi to declare where he intends to run for office before she calls a byelection in Lethbridge.

    • The health of honeybees will be the focus of a presentation at the University of Lethbridge on Wednesday evening.

    • The union representing the fire rangers with the Ministry of Natural Resources says money won’t fix the systemic problems in the workplace.

    • Rallies by a group called Voices Against Violence took place across the country on Monday, including Sault Ste. Marie.

    • An Indigenous group in northwestern Ontario shut down the highway for a couple of hours Monday morning in protest after ancestral remains were found at a construction site.

    N.L.

    Shopping Trends

    The Shopping Trends team is independent of the journalists at ۴ý. We may earn a commission when you use our links to shop. Read about us.

    Stay Connected
    Follow ۴ý