World Biz
OTTAWA, Jan. 17 (Xinhua) -- Canada's Consumer Price Index (CPI) rose 6.8 percent on an annual average basis in 2022, hitting a 40-year high, Statistics Canada announced Tuesday.
Price increases were broad-based in 2022 and higher energy prices contributed the most to headline inflation. Excluding energy, the annual average CPI rose 5.7 percent in 2022, the national statistical agency said.
Year-over-year price growth accelerated each month in the first half of the year, reaching a high of 8.1 percent in June, and slowed in the second half of the year. The CPI rose 6.3 percent year on year in December, following a 6.8 percent increase in November, the agency said.
According to the agency, consumers paid 28.5 percent more for gasoline on an annual average basis. Crude oil prices rose as a result of global supply uncertainty and higher demand in response to the easing of COVID-19 restrictions, pushing prices at the pump higher.
Prices for fuel oil and other fuels rose 59.6 percent on an annual average basis, following a 24.4 percent gain in 2021.
Prices for food purchased from stores rose 9.8 percent in 2022, the fastest pace since 1981, after increasing 2.2 percent in 2021.
In the coming months, the relatively large month-over-month price movements that were observed from January 2022 to June 2022 will stop influencing the 12-month price movements in 2023. The broad increase in prices, led by prices for energy products, in the first half of 2022 will have a downward impact on the year-over-year rate of consumer inflation through the first half of 2023 because higher prices from 2022 will be used as the basis for year-over-year comparisons, Statistics Canada said.