Consumers paid even more in May
Headline inflation in Canada was 7.7% in May, up from 6.8% in April
By Rob Roach, ATB Economics 22 June 2022 1 min read
We knew it was going to get worse before getting better, but headline inflation in Canada hitting 7.7% in May is still eye-popping.
The inflation rate was a little lower in Alberta at 7.1%, but price pressure hasn’t been this high in the province since February 1983.*
Consumer prices were higher in Alberta in May compared to 12 months earlier across all of the major components of the index with energy costs leading the pack at +31.7%.
Food costs were up by 7.2% (+8.7% at the grocery store and +4.1% at restaurants).
More modest rates of inflation were seen in the health and personal care category (+1.3%) and for clothing and footwear (+4.3%).
Core inflation, which excludes food and energy, was also running hot at 4.9% in Alberta.
The Bank of Canada has raised interest rates in an effort to cool inflation, but the impact of the higher rates on prices will take time to be felt. At the same time, the Russian invasion of Ukraine and tight oil and natural gas supplies will continue to keep food and energy costs elevated until something changes on these fronts.
*Alberta’s inflation rate hit 9.7% as recently as November 2002 and remained elevated for several more months, but this was largely the result of provincial rebates causing large fluctuations in the year-over-year cost of natural gas paid by homeowners.
Answer to the previous trivia question: In 1923, the Billes brothers moved their store to the corner of Yonge and Gould in Toronto under the name Canadian Tire Corporation.
Today’s trivia question: Considered to be the most expensive thing in the world, how much did the yacht “History Supreme” cost?