Canada’s Inflation Rate Highest In 7 Years

3% inflation rate is the largest recorded since 2011.

Canada’s annual inflation rate hit 3% in July, a level that hasn’t been matched in the past 7 years.

Inflation increased from 2.5% in June to 3% in July, contrary to economists expectations of a steady rate.

A key driver of the inflation rate surge were gas prices, which increased 0.8% in July.

As noted by Bloomberg, Canadian gas prices are up a whopping 25.4% from a year ago.

That report also noted that “There was little effect from higher tariffs on consumer prices in July. Statistics Canada released a report on the estimated impacts of Canada’s tariffs on U.S. metal and consumer products and found there would only be a small overall increase — with no more than a decimal point increase to inflation over a limited period of time.”

The rise in gas prices is an example of the cost of Canada not having true energy independence. Our consumers are far more vulnerable to swings of the world market than we should be.

In addition to the overall inflation rate increase, services prices went up 3.2%, while goods went up 2.8%. The inflation rate for services was the highest since 2008.

The rise in inflation has fueled speculation about more interest rate hikes ahead from the Bank of Canada.

Spencer Fernando

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Catanddog
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Catanddog

Spenser, why will interest rates go up? Who decides increases, and for what purpose? Inflation goes up, and then interest rate goes up? Why? It only hurts the middle class. Is that the purpose? What do the Feds get out of increases?

Gonzo the Magnificient
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Gonzo the Magnificient

The market determines long-term rates: as they want inflation protection in an inflationary economy, rates go up and the BofC can influence short-term rates through money supply. A real simple answer.

Ivan Hawkes
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Ivan Hawkes

Hearing the word “inflation” doesn’t necessarily click with a lot of people, they may not understand that it means “paying more to get less”. Inflation in our economy means we are deeper into debt slavery of the population. Your children will pay dearly for the governments foolish and irresponsible activities today. The Liberals dig us deeper into an economic hole, that we will soon be unable to see any light. We will pay dearly for the fiasco called Liberal.