Tuesday, March 21, 2023

Inflation in Canada reaches 8.1%, highest level since 1983 – Hola News

Toronto (Canada), July 20 (EFE). – The year-on-year rate of inflation in Canada broke a record again in June and reached 8.1%, the highest level since 1983 due to the rapid increase in petrol prices. Public body Statistics Canada (EC) on Wednesday.

On July 13, the Bank of Canada had already forecast inflation would exceed 8% and warned that it would remain at these levels for months to come.

The Monetary Authority of Canada surprised by raising interest rates by 1 point last week, the fourth consecutive increase that left the index at 2.5%, trying to contain runaway inflation.

The Bank of Canada has expressed concern that the economy is caught in a cycle of high inflation and has slashed the economy’s growth to 3.5% in 2022, 1.75% in 2023 and 2.5% in 2024.

The central bank has also warned that its main objective is to control inflation, which is why it plans to maintain a sharp rise in interest rates until growth is mastered.

Statistics Canada reported that if gasoline prices in June are excluded, inflation will be 6.5% in 2021, 54.6% higher than in the same month.

Despite the high growth in inflation in June, economists said it was slightly below the expected growth of 8.4%.

Another reason for optimism was the slowdown in growth in food and housing prices.

Core inflation, excluding energy and food, rose 0.4% from May to June, the lowest figure in months.

Nation World News Desk
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