The Consumer price inflation in Canada attained a value of 3.82 % in 2023
The indicator recorded a historical change (bps difference) of 308 bps between 2020 to 2023, and is expected to decline by...
GlobalData projects the figure to change by 67 bps between 2024 and 2028, reaching...
Inflation
Inflation is an upsurge in the level of prices of the goods and services in an economy, which leads to a decline in the purchasing power of the currency’s value. It is calculated as the rate of change in prices in a specific period. The consumer price index (CPI) is one of the most common indicators for measuring inflation in an economy.
Global Inflation
Global inflation is a measure of the average annual rate of growth increase in national prices across all countries. It can be calculated using various methods including simple average, weighted average, and median price change. Global Data forecasts that the world economy will grow at a slower pace of 3.5% in 2022 following a 5.9% growth in 2021. On the other hand, the global inflation rate is projected to rise to 6.5% in 2022 from 3.5% in the previous year due to supply chain disruption amid the Ukraine-Russia war.
Consumer Price Inflation in Canada
Between 2018-2021, the consumer price inflation in Canada was highest in the year 2021, reaching 3.3%, an increase of 3.7% over the previous year 2020. Between 2018 to 2021, Canada’s consumer Inflation increased by 0.5%.
The crash in oil prices in April 2020 and low retail demand created downward pressure on inflation. According to Statistics Canada, retail consumer prices rose by 3.4% Y-o-Y in April 2021. Recovering demand for non-essential commodities as the economy gradually reopens is expected to drive inflation in 2022.
Factors that Impact Inflation Rate
Some of the major factors affecting consumer prices are government policies, money supply, consumer spending, employment levels, high disposable income, and wage levels. Interest rates can also have a significant impact on spending on consumer goods.
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