OTTAWA, September 15 (Hfrance. en) - Canada's annual inflation rate accelerated to an 18-year high in August, driven by broad pressure from theprice hike, data shows 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 on rising cost of living.
"The numbers released today clearly show that under Justin Trudeau, Canadians are in an affordability crisis " said Erin O 'Toole, leader of the main opposition Conservative party, in a statement.
The Conservatives have a narrow lead on the Trudeau Liberals at 31.2% to 30.5 % until days before the September 20 vote, according to a newNanos Research poll water. Left-wing New Democrats are in third place with 21.4%.
Countries around the world grapple with high inflation amid obstacles supply chain and labor shortages due to restrictions. have eased and tightened with each new wave of viruses, leading to volatile demand and supply bottlenecks.
La Banque du Canada has said it expects headline inflation to stay above its 1% to 3% control range this year, before returning to the 2% target in 2022.
"This does not mean anything short-term for the Bank of Canada. They have insisted a lot that the inflationary shock is transient," said Andrew Kelvin, Chief Strategist for Canada at TD Securities.
In Canada, the fThe surge in inflation was caused by high gasoline prices, rising housing costs and soaring prices for goods such as furniture, appliances and vehicles, as well as high travel costs as restrictions relaxed.
It was in front of the United States , where a hard fourth wave has put a damper on travel.
"This is really the opposite mirror to what we saw in the United States yesterday, where we had travel items showing signs of cooling. Here , they are showing signs of warming, "said Jimmy Jean, chief economist at Desjardins Group.
" This is still part of the story. reopening effect. In August, we were back to normal again, "added Jean.
Analysts polled by Hfrance.fr expected the annual inflation rate to reach 3.9% in August. At 4.1%, this is the highest since the 4.2% recorded in March 2003.
The three measures of the core inflation all posted gains. The common CPI, which the Bank of Canada considers the best indicator of the economy's underperformance, rose to 1.8% from 1.7% in July.
The Canadian dollar was trading 0.2% higher at 1.2663 for the greenback, or 78.97 cents US. Additional report by David Ljunggren in Ottawa and Fergal Smith and Nichola Saminather in Toronto; Edited by Andrew Heavens, Paul Simao and Andrea Ricci
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