Toronto 
Statistics Canada today released the Consumer Price Index which rose up 4.8% compared to December 2020.
According to the report by the agency, the Consumer Price Index rose 3.4% on an annual average basis in 2021 which is the fastest pace since 1991.
Statistics Canada says the main reason behind the high prices was the COVID-19 pandemic which in turn led to “widespread global supply chain constraints and pent-up consumer demand as the economy reopened.” When the country reopened in 2021, Canadians consumed more than in 2020 and the employment rate returned to pre-pandemic levels by September says the report.
As per the report, among the provinces, the Islanders experienced the highest price increase of 5.1% followed by Nova Scotians (4.1%), while Saskatchewan residents had the lowest price growth at 2.6%.
Statistics Canada says the prices of all major components of Consumer Price Index (“food”, “shelter”, “household operations, furnishings and equipment”, “clothing and footwear”, “transportation”, “health and personal care”, “recreation, education and reading”, and “alcoholic beverages, tobacco products and recreational cannabis”) except clothing and footwear increased in 2021.
Consumer Price Index Report 2021 in a nutshell:
As per the ‘Consumer Price Index: Annual review, 2021’ report by Statistics Canada:
- Canadians paid 31.2% more for gasoline on an annual average basis in 2021, with prices rising at the fastest pace since 1981.
- The price of natural gas increased on an average by average 16.1% compared to last year.
- The price of groceries increased by 2.2%. This includes a rise in prices for eggs (+6.3%), bacon (+12.5%), bread, rolls and buns (+0.6%), fresh fruit (+2.6%), seafood and other marine products (3.4% ), meat (4.3%). But, the cost of fresh vegetables decreased by 2.6% led by Tomato prices (-19.5%).
- Shelter costs rose at the fastest pace at +3.9% since 2008. The owned accommodation price index rose +4.1% at a faster pace than the rented accommodation price index (+1.7%) in 2021. National rent prices increased 1.6% compared with a year earlier.
- Passenger vehicle prices rose 5.1% mainly due to the global shortage of semiconductor chips, but insurance premium prices decline by 3.4%.
- The cost of furniture increased by 7.3%, household equipment by 3.6%, and the prices of refrigerators and freezers rose 9.6% due to supply chain disruptions, and higher shipping costs. But, prices of sporting and exercise equipment fell by 4.8%.
- The cost of cellular services decreased by 16.9% and computer equipment, software and supplies cost decreased by 3.1%.
- Clothing and footwear prices decreased by 0.3%
- Prices for services rose by 2.3%.
- The cost of food purchased from restaurants rose by 3.1% and personal care services rose by 5.4%
- The Cost of accommodation like hotel rooms increased by 2.2%.
Personal Inflation Calculator
Statistics Canada has an online Personal Inflation Calculator which you can use to see what your personal inflation was in 2021 depending on the amount you spent monthly on groceries, rent, mortgage etc.
Sample calculation/Personal Inflation Calculator – Statistics Canada
What to expect in 2022:
As supply chain issues persist due to the global pandemic, Canada’s Food Price Report which was released in December of last year warns Canadians to expect significant increases in dairy and restaurants, bakery and vegetables.
ReMax in their 2022 Canadian Housing Market Outlook Report predicts an increase of 9.2% in the average home prices across the country.
Those who have a loan of some kind with a variable interest rate can expect monthly payments to go up as the Bank of Canada might increase interest rates in 2022 to curb rising inflation.
Yesterday, Fraser Institute released a Misery Index report which ranks Canada as the 6th most miserable country among 35 advanced economies based on unemployment and inflation rate.
