As in August, this slowdown in inflation is basically attributable to the fall in the price of gasoline at the pump.
The most expensive grocery store
The price of food purchased in stores continued to increase in September, registering a jump of 11.4% compared to the same period last year. This is unprecedented since August 1981 (+11.9%).
” The increase in the prices of food and beverages is attributed, among other things, to unfavorable weather conditions, the increase in the prices of important inputs, such as fertilizers and natural gas, as well as the geopolitical instability resulting from the invasion of Ukraine by the From Russia. »
CPI whole from 10consecutive months, that is, from December2021″,”text”:”The increase in food prices purchased in stores has exceeded the CPI for all items for 10 consecutive months, that is, since December 2021″}}”>The increase in the prices of food bought in stores exceeds that ofCPI in total for 10 consecutive months, i.e. from December 2021notes Statistics Canada.
On Monday, Metro and Loblaw supermarkets announced a price freeze on certain products for several months. Ads that could represent successful marketing efforts, according to experts.
For several months, the food industry has been suspected in several countries of taking advantage of the rise in inflation to apply increases greater than the real rise in food prices in order to increase their profits.
Furniture, cars, houses and school fees
Excluding energy and food, prices increased 5.4% in September on an annual basis in Canada.
The cost of durable goods, including furniture and motor vehicles, saw a 6.7% year-over-year increase in September. That is 0.7 percentage point higher than in August.
Also on an annual basis, car prices rose 8.4% in September, mainly due to the continuing shortage of semiconductor chips. Furniture, for its part, increased by 13.3% compared to September 2021.
Despite a marked slowdown in the housing market, rising mortgage rates, fueled by five consecutive increases in the Bank of Canada’s key interest rate this year, have also put upward pressure on the cost of living, notes Statistics Canada.
8.3% from one year to another. This is the third consecutive month of increases”,”text”:”Interest rates have started to rise recently and the Mortgage Interest Cost Index, measured in the CPI, increased 8.3% year over year. This is the third consecutive month of increase”}}”>Interest rates have started to rise recently and the Mortgage Interest Cost Index, as measured by the CPI, is up 8.3% year over year. This is the third consecutive month of increasenotes Statistics Canada.
During its last intervention, at the beginning of September, the Bank of Canada announced an increase in its reference rate of 0.75 percentage points to 3.25%. Other increases could occur in the coming months as inflation reacts little to the institution’s interventions.
Tuition fees are also not immune to rising cost of living. According to the most recent data, tuition fees increased by 2.3% annually in September. The largest increases were recorded in Alberta (+7.7%) and Newfoundland and Labrador (+6.8%).
Average hourly earnings increased 5.2% year over year in September.
This means that, on average, the rise in prices has exceeded that of wages. The gap in September is greater than that observed in Augustexplains the federal agency.
Looking back a little further, annual inflation in Canada peaked last June at 8.1% before slowing to 7.6% in July and 7% in August.
“Economic turmoil” on the horizon
Given the Bank of Canada’s extensive efforts to limit credit, Canada’s overheated economy could soon suddenly slow down, Federal Finance Minister Chrystia Freeland warned this week.
Our economy will slow down. Many people will see their mortgage payments increase. Business will no longer be as good as it has been since the lockdown. And the unemployment rate will no longer be at an all-time low.warned Mrs. Freeland without saying the word
” The Bank of Canada is putting the brakes on the economy, we are already seeing the slowdown in economic activity and that will continue, that is the intention. We must know the challenges that lie ahead and we must be prepared for them. »
Yesterday, Prime Minister Justin Trudeau echoed the same message when he warned Canadians that the country was about to enter a zone of economic “turbulence.”
The specter of a next recession also hangs over the United States, where the Federal Reserve’s sustained efforts have failed to curb inflation, which reached 8.2% annually last September, 0.1 percentage points less than the previous month. .
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