Canada’s inflation rate jumped to 3.7 per cent in July, as the cost of shelter and durable goods rose sufficiently quickly to push the cost of living up to its highest level since 2011.
Statistics Canada reported Wednesday that the homeowners’ replacement cost index, which is related to the price of new homes, went up at an annual pace of 13.7 per cent in July—the fastest increase on record dating back to 1987.
The rising price of cars was also a major contributor, with passenger vehicle prices rising 5.5 per cent. “The gain was partially attributable to the global shortage of semiconductor chips,” the data agency said.
Food prices increased by 1.7 per cent, a much slower pace of gain than seen of late.
The inflation rate went up in every province in Canada, but there were wide regional differences. Saskatchewan had the lowest increase in the country, at 2.3 per cent, while Prince Edward Island saw its cost of living increase by 6.1 per cent.