(Ottawa) Economists predict inflation continued to climb in June.
Posted at 11:55 a.m.
The consumer price index reached a 40-year high in Canada in May, reaching 7.7%. Economists predict it could rise to at least 8% in June.
Statistics Canada is due to release inflation data for June on Wednesday, a week after the Bank of Canada decided to raise its key rate by one point.
Escalating prices for many essentials – gasoline, food, furniture – began alongside the post-pandemic recovery. In the energy sector, prices jumped 35% over a one-year period, while food prices rose about 10%.
The trend is not going away anytime soon as many suppliers have warned grocery chains to expect further increases.
Derek Holt, head of capital markets economics at Scotiabank, predicts inflation will hit 8.9% in June due to “economic stimulus effects.”
For its part, the Royal Bank believes that we can expect a further rise in food and fuel prices.