Categories: Need to know

Inflation rises to 3.3 per cent

Rising fuel costs to blame: StatsCan

by macleans.ca on Tuesday, April 19, 2011 1:07pm - 10 Comments

Canada’s annual inflation rate jumped to 3.3 per cent in March, pushing inflation to its highest level since the recession began in September 2008, according to a new StatsCan report. Food and fuel prices are the main contributors to this steep increase. In March, gas prices rose by 18.9 per cent, fuel oil and other fuels went up by 31.3 per cent, while electricity prices increased by 4.3 per cent. Food costs rose by 3.3 per cent, marking the largest year-over-year increase since August 2009. Vegetable prices skyrocketed by 18.6 per cent, while meat rose by 5 per cent. Higher energy costs are a blessing and a curse for Canadians, said TD Bank Financial Group economist Craig Alexander, who said that while gas prices are impacting Canadians’ wallets, “higher oil prices are good for Canada,” because it is a net oil-exporting country. The Bank of Canada says that while fuel costs would boost inflation to 3 per cent by June, energy prices will be stabilizing in 2012, making the increase temporary.

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Tags: economy

noob_goldberg

"The Bank of Canada says that while fuel costs would boost inflation to 3 per cent by June, energy prices will be stabilizing in 2012, making the increase temporary."

The Bank of Canada then shook their magic 8-ball and determined that Vancouver would win the Stanley Cup.
Ray Fortier

Here we are again never able to determine what comes first. Logically the price of energy as impacts on pricing right accross the board as distribution becomes more costly. The real crime here is that the current energy crisis if a figment of some futures speculative group and isn't even a real circumstance. Todays market price isn't even based on what price is currently being demanded today, its based on a profiteering plan based on indications what the price of fuels may be in June or July. Canada has more oil than Saudi Arabia and with the recent discovery of the Bakken Field in Eastern Alberta, Southern Sask., and Western Manitoba which has 1 billion barrels of light sweet crude waiting to be tapped and a similar quantity in the US portion of the Field this whole scenario is nothing but a cash grab. The Canaian Government isn't going to complain as they are collecting billions in royalties and taxes when they are in a deficet situation. Looks as though we are hung out to flap in the wind and have our hard earned cash legally thefted once again.
hosertohoosier

If Carney raises rates in the midst of an election, the impact could be significant (especially with an overheated housing market that is, in part, driven by unsustainably low interest rates).

noob_goldberg

If Carney had raised rates a week before the election, it might have had an impact. With two weeks to go, the effects won't be felt (and reported on) until a month after at the earliest.

Stewart_Smith

Well unless Carney comes clean and issues a press release along the lines of:

TODAY I AM RAISING INTEREST RATES TO PUNISH THE IRRESPONSIBLE OPPOSITION FOR FORCING THE 40TH!!! ELECTION IN 140 YEARS, WHILE UNCERTAINTY AND PIRATES SURROUND THE SHORES OF THIS COUNTRY WHICH USED TO BE AND ALWAYS WILL BE CANADA

Note: Dimitri, I can start work Monday.

Olivier

I'm glad I don't drive
LoveMusic

Is Harper gonna wear this? Stable hand on the rudder and all that ….
Cecil Palmerston

Attributing to inflation to “raising prices” is circular logic; the devaluation of money is conversely proportional to the amount in supply.
JSC

Time to Kick these Thieving Multinational Companies Out.

NATIONALIZE THE OIL.
http://www.manhattancalumet.com james moylan

I have a web site where I give investment advise on penny stocks and stocks under five dollars. I always get a bang out of the federal governments idea of leaving food and energy out of the consumer price index. they call this the core rate. the core rate is the inflation rate excluding food and energy. I guess everybody never uses fuel for their car their house and nobody ever eats anything anymore.