2021 ends with inflation still running hot
December marked the highest monthly inflation rate in Alberta in fourteen years
By Siddhartha Bhattacharya, ATB Economics 19 January 2022 1 min read
Prices remained elevated as Alberta’s Consumer Price Index (CPI) soared 4.8% in December, on a year-over-year basis.
Although inflation moderated slightly after August, December marked the highest monthly inflation rate in fourteen years.
For the full year, Alberta’s inflation rate stood at 3.2% compared to an annual average of 1.1% in 2020 and 1.8% in 2019.
Energy prices (+26%) played a key role in Alberta’s 2021 inflation story, posting their largest annual increase since 1981, attributable mostly to the pandemic-induced historic lows experienced in 2020.
Driven by more pronounced (versus Alberta) increases in Atlantic and central Canada, the national inflation rate came in at 3.4% for 2021. Meanwhile, inflation averaged 4.7% in the US for the full year, a steep rise from 1.2% in 2020.
Looking ahead, prices are currently expected to stay high in the coming months before starting to moderate in the second half of the year.
Answer to the previous trivia question: The space between the floor and lower kitchen cabinets is called a toe kick. The cabinets protrude over the toe kick to allow us to stand closer to the counter while preparing food.
Today’s trivia question: Are Canadian $1,000 bills legal tender?