ANL 19.29 Decreased By ▼ -1.56 (-7.48%)
ASC 13.45 Decreased By ▼ -0.09 (-0.66%)
ASL 22.20 Decreased By ▼ -0.80 (-3.48%)
BOP 8.18 Decreased By ▼ -0.02 (-0.24%)
BYCO 7.55 Decreased By ▼ -0.26 (-3.33%)
FCCL 17.45 Decreased By ▼ -0.35 (-1.97%)
FFBL 22.10 Decreased By ▼ -0.65 (-2.86%)
FFL 15.20 Decreased By ▼ -0.30 (-1.94%)
FNEL 7.40 Increased By ▲ 0.05 (0.68%)
GGGL 17.00 Decreased By ▼ -0.83 (-4.66%)
GGL 39.30 Decreased By ▼ -0.71 (-1.77%)
HUMNL 5.76 Decreased By ▼ -0.26 (-4.32%)
JSCL 18.00 Decreased By ▼ -0.30 (-1.64%)
KAPCO 35.95 Decreased By ▼ -0.40 (-1.1%)
KEL 3.29 Decreased By ▼ -0.11 (-3.24%)
MDTL 2.50 Decreased By ▼ -0.15 (-5.66%)
MLCF 34.24 Decreased By ▼ -0.86 (-2.45%)
NETSOL 119.85 Decreased By ▼ -9.55 (-7.38%)
PACE 4.94 Increased By ▲ 0.19 (4%)
PAEL 26.53 Decreased By ▼ -0.47 (-1.74%)
PIBTL 8.71 Decreased By ▼ -0.14 (-1.58%)
POWER 7.25 Decreased By ▼ -0.20 (-2.68%)
PRL 16.97 Decreased By ▼ -0.18 (-1.05%)
PTC 9.65 Decreased By ▼ -0.36 (-3.6%)
SILK 1.50 No Change ▼ 0.00 (0%)
SNGP 45.10 Increased By ▲ 0.10 (0.22%)
TELE 17.48 Decreased By ▼ -1.41 (-7.46%)
TRG 161.00 Decreased By ▼ -1.70 (-1.04%)
UNITY 31.80 Decreased By ▼ -1.15 (-3.49%)
WTL 2.85 Decreased By ▼ -0.09 (-3.06%)
BR100 4,718 Decreased By ▼ -14.65 (-0.31%)
BR30 22,320 Decreased By ▼ -482.1 (-2.11%)
KSE100 45,074 Decreased By ▼ -223.36 (-0.49%)
KSE30 17,742 Decreased By ▼ -68.18 (-0.38%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,482
5024hr
Pakistan Cases
1,234,828
2,23324hr
4.23% positivity
Sindh
453,858
Punjab
426,639
Balochistan
32,828
Islamabad
104,764
KPK
172,498
World

Canada inflation hits 18-year-high with election just days away

  • "The numbers released today make it clear that under Justin Trudeau, Canadians are experiencing an affordability crisis," says Erin O'Toole
15 Sep 2021

OTTAWA: Canada's annual inflation rate accelerated to an 18-year-high in August, driven by broad upward price pressures, data showed on Wednesday, just days before a hotly contested federal election that could see Prime Minister Justin Trudeau's Liberals ousted.

The rate rose to 4.1% in August, its fastest clip since March 2003, Statistics Canada said, beating analyst estimates and prompting Trudeau's main rival to pounce over the rising cost of living.

"The numbers released today make it clear that under Justin Trudeau, Canadians are experiencing an affordability crisis," said Erin O'Toole, leader of the main opposition Conservatives, in a statement.

The Conservatives have a narrow lead over Trudeau's Liberals at 31.2% to 30.5% just days before the Sept. 20 vote, according to a new Nanos Research poll. The left-leaning New Democrats are in third at 21.4%.

Countries around the world are grappling with hot inflation amid supply chain hurdles and labor shortages as restrictions are eased and tightened with each new wave of the virus, leading to choppy demand and supply bottlenecks.

Canadian dollar firms as inflation climbs to 18-year high

The Bank of Canada has said it expects headline inflation to remain above its 1%-3% control range this year, before easing back to the 2% target in 2022.

"This doesn't mean anything short-term for the Bank of Canada. They've been very insistent that the inflation shock is transitory," said Andrew Kelvin, chief Canada strategist at TD Securities.

In Canada, the hot inflation print was driven by high gasoline prices, rising housing costs and a surge in the prices of goods like furniture, appliances and vehicles, along with high travel-related costs as restrictions eased.

That was the opposite of the United States, where a harsh fourth wave has put a damper on travel.

"It is really the mirror opposite of what we saw in the US yesterday, where we had the travel components showing signs of cooling. Here, they are showing signs of heating up," said Jimmy Jean, chief economist at Desjardins Group.

"It is still part of the reopening effect. In August we were still getting back to normal," Jean added.

Oil prices climb $1 after drawdown in US stocks

Analysts polled by Reuters had expected the annual inflation rate to rise to 3.9% in August. At 4.1%, it was the highest since the 4.2% recorded in March 2003.

The three measures of core inflation all posted gains. CPI common, which the Bank of Canada calls the best gauge of the economy's underperformance, edged up to 1.8% from 1.7% in July.

The Canadian dollar was trading 0.2% higher at 1.2663 to the greenback, or 78.97 US cents.

Comments

Comments are closed.