Canada's October Consumer Prices Hit Highest in 18 Years... Inflation Emergency

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Last month, Canada's inflation rate reached its highest level in 18 years.

On the 17th (local time), Statistics Canada announced in its monthly inflation report that the Consumer Price Index (CPI) rose 4.7% compared to the same period last year. The increase compared to the previous month was 0.5%.

This marks the largest increase since February 2003 and has exceeded the Bank of Canada's inflation target range of 1-3% for seven consecutive months, according to daily newspapers such as The Globe and Mail.

In particular, the rise in inflation was led by the transportation sector, which increased by 10.1% year-over-year. Among this, gasoline prices surged by 42%.

Excluding energy items, the consumer price inflation rate was 3.3%.

Due to the global semiconductor shortage, passenger car prices rose by 6.1%, and under pressure from rising food prices, meat products also increased significantly by 10%.

The Globe explained that central banks around the world, including the Bank of Canada, view recent inflation trends as more persistent than temporary, focusing on various base effects and global supply chain disruptions as causes.

Accordingly, the Bank of Canada is expected to raise its benchmark interest rate, which has been maintained at 0.25% since March last year immediately after the COVID-19 outbreak, possibly as early as April next year.

Regarding this, Governor Tiff Macklem recently stated, as reported by The Globe, "We are not at that point yet, but we are getting closer."

He added, "Supply chain disruptions seem likely to continue longer than expected," and "Rising energy prices are also fueling current inflation."

This content was produced with the assistance of AI translation services.