Inflation rates are spiking around the world
Canada’s inflation rate remained at 4.7 percent in November, matching the annual pace seen the previous month.
The data point released by Statistics Canada on Wednesday morning was in line with economist expectations, tying October’s level, which was the highest inflation rate since 2003.
Inflation rates are soaring around the world right now, as the combination of record government spending, supply chain disruptions, and a surge in demand for consumer goods has caused prices to rise quickly.
For comparison purposes, U.S. data last week showed that country’s inflation rate rose to an almost 40-year high of 6.8 percent last month.
Consumer prices are heading higher at their fastest pace in decades, and so far incomes aren’t keeping pace.
Statistics Canada data shows that while the cost of living has increased by almost five percent in the past year, incomes have only risen by about half that or 2.8 percent.
Economist Tu Nguyen with consultancy RSM Canada said wages should start to catch up soon, though. “There is usually a time lag between inflation and wages, with the latter being stickier and taking longer to shift. However, with the tight labor market, and wages already increasing substantially for job hoppers, we will soon see rising wages to match inflation,” she said. The data agency says higher prices for gasoline, furniture, and food were the biggest factors pushing up the annual consumer price index.
Gasoline prices rose by 43.6 percent in the year up to November. Grocery prices, meanwhile, rose by 4.7 percent. That’s the fastest pace of increase since January 2015.
We’ll all be paying a lot more for food next year, says Canada’s Food Price Report
Prices for furniture rose 8.7 percent amid higher shipping costs. The data agency says the introduction of tariffs earlier this year may have contributed to the increase in prices for upholstered furniture, which were up by more than 11 percent compared to what they were a year ago.
Source: cbc.ca
Thursday, May 7, 2026
