Canada recorded a record rise in prices
Statistics Canada estimates that the annual rate of inflation is close to the 1991 record. The consumer price index is rising rapidly and the purchasing power of the currency is falling.
The consumer price index, which reflects the rate of inflation, rose by an average of 3.4 percent for all of 2021, compared with only a 0.7 percent increase for 2020.
| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
| 1,8% | 2,9% | 1,5% | 0,9% | 1,9% | 1,1% | 1,4% | 1,6% | 2,3% | 1,9% | 0,7% |
The highest annual growth rate was recorded by Statistics Canada in 1991, when it was 5.6%. For comparison, over the past 10 years, annual growth in Russia has not fallen below 3%.
In December 2021, Canada's consumer price index was 4.8% higher than in December 2020. In November it was 4.7% higher. The consumer price index is calculated based on the prices in the "consumer basket" — a notional set of goods that a typical person with an average income buys over a certain period. The ratio of average annual spending shows the approximate level of price change over the year.
In total, Statistics Canada looks at eight categories of consumer goods — transportation prices rose the fastest, 7.2% over the year. Food, utilities, housing rents, furniture, and appliances rose markedly compared to 2020. Clothing and footwear became slightly cheaper, with the consumer price index decreasing by 0.3%.
Prince Edward Island and Nova Scotia recorded the highest rates of inflation, 5.1% and 4.1%, respectively. Price increases in all Atlantic provinces as well as in Quebec and Ontario exceeded the national average. However, the western provinces lagged behind the national average, and Saskatchewan registered the lowest level with a price increase of 2.6%.
The Canadian government is responding quickly to rising consumer prices by indexing wages. The average hourly rate has increased by $7.6 CAD since 2010. In 2021, it was $30 CAD.
