Inflation jumps to its highest since 1983

Inflation continued to accelerate in May, reaching a level not seen since 1983. The high level of inflation continues to be mainly due to a handful of components: gasoline prices, food prices, homeowners’ costs, utilities costs and motor vehicle prices. Altogether, these five items are responsible for about 5.8 percentage points of the 7.7% inflation rate.

Economic insight provided by Alberta Central Chief Economist Charles St-Arnaud. This report includes regional details for Alberta. Bottom line Today’s Labour Force Survey data shows that job gains were remained…

Insolvencies remained low in April, as low interest rates and the continued economic recovery with sustained employment gains are holding them back. However, they could be bottoming out, with the rise in insolvencies so far this year slightly stronger than suggested by seasonal patterns.

As expected, the Bank of Canada increased its policy rate by 50bp to 1.00% and announced it would continue quantitative tightening. The key message in today’s decision is that the central bank stands ready to be more aggressive in its fight against inflation. Read more on our Insights blog!

Growth in the first quarter came in weaker than expected, as net exports were a drag on economic activity. However, the monthly GDP profile suggests robust momentum going into the second quarter.

Inflation continued to accelerate in April, reaching a level not seen since 1983. The high level of inflation continues to be mainly due to a handful of components: gasoline prices, food prices, homeowners’ costs, utilities costs and motor vehicles prices.