Inflation rose to 4.7% in October as the consumer price index recorded the highest annual rise since February 2003 as per the statistics of Canada.
In September the consumer price rose to 4.4 percent compared with previous years.
Authorities said Wednesday that factors contributing to the surge included supply chain disruptions, pump price increases, and comparisons with lows a year ago.
Gasoline prices have risen 41.7% compared to October 2020, the fastest rise since May last year, according to Statistics Canada.
According to Statistics Canada excluding energy prices, the Consumer Price Index rose 3.3% last month from October 2020.
The October inflation index also showed a new pandemic high in the consumer price index. This has exceeded the Bank of Canada’s target range of 1-3 percent for the seventh straight month.
The last time the index for this long position exceeded 3% was in the seven months that ended in December 1991.
According to Statistics Canada, the average of the three core inflation indicators, which are considered to be better indicators of underlying price pressure and are closely monitored by the Bank of Canada, remained unchanged from September at 2.67 percent in October.
Central banks warn that inflation is likely to remain high and could rise to nearly 5 percent by the end of the year.
CIBC senior economist Royce Mendes said inflation reports are unlikely to change banks’ thinking about when to value rate hikes, and senior decision-makers are clearly offended by the headline numbers.
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