×
2 196
Fashion Jobs
TJX CANADA
Distribution Center Loss Prevention Coordinator
CDI · Brampton
TJX CANADA
Distribution Center Loss Prevention Coordinator
CDI · Brampton
TJX CANADA
Distribution Center Loss Prevention Superviseur
CDI · Brampton
WINNERS
Jewelry Consultant, Full Time, Winners & Homesense, Coquitlam
CDI · Coquitlam
NORDSTROM
Assistant Manager - Asset Protection - Eaton Center
CDI · Toronto
NORDSTROM
Asset Protection - Agent - Heartland Town Center Rack
CDI · Mississauga
LULULEMON
Assistant Manager, Operations | Upper Canada Mall
CDI · Newmarket
AESOP
Part-Time Retail Consultant | Aesop Kitsilano
CDI · Vancouver
LULULEMON
Assistant Manager, Operations | Bower Place
CDI · Red Deer
SHISEIDO
Director, Human Resources
CDI · Markham
ADIDAS
Senior Finance Manager, Commercial
CDI · Vaughan
ADIDAS
Director of Finance - Adidas
CDI · Vaughan
LULULEMON
Assistant Manager, Operations | Scarborough Town Centre
CDI · Toronto
LULULEMON
Assistant Manager, Operations | Lululemon Abbotsford
CDI · Abbotsford
NORDSTROM
Asset Protection - Agent - Pacific Centre
CDI · Vancouver
AESOP
Retail Consultant | Eaton Centre
CDI · Toronto
TJX CANADA
Loss Prevention Customer Service Agent - Thunder Bay
CDI · Thunder Bay
WINNERS
Jewelry Consultant, Full Time, Winners & Homesense, Coquitlam
CDI · Coquitlam
MICHAEL KORS
Superviseur Des Ventes Dix30/Sales Supervisor ft- Dix30
CDI · Brossard
ON RUNNING
Sales Representative
CDI · VANCOUVER
TAPESTRY
Sales (Bilingual) Supervisor i
CDI · Halton Hills
MICHAEL KORS
Gestionnaire Des Ressources Humaines – Canada/Human Resources Manager – Canada
CDI · Montreal
By
Reuters
Published
Jun 23, 2022
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Canada inflation up near 40-year high; calls mount for 75-bps rate hike

By
Reuters
Published
Jun 23, 2022

​Canadian consumer prices increased in May at rates not seen since January 1983, ahead of analyst forecasts, driven by pricey gasoline, official data showed on Wednesday, upping pressure on the central bank to follow the U.S. Federal Reserve with a supersized rate hike.


Reuters


Canada's annual inflation rate accelerated to 7.7% in May, galloping past April's 6.8% and analyst forecasts of 7.4%, data from Statistics Canada showed. Inflation is far above Bank of Canada's April forecast that it would average 5.8% this quarter.

"It's a bit alarming, particularly the breadth of inflation we're seeing, I think it really reinforces that Bank of Canada needs to take drastic actions to bring inflation under control," said Andrew Kelvin, chief Canada strategist at TD Securities.

The Bank of Canada raised interest rates to 1.5% from 1.0% this month, its second consecutive half percentage point increase, and said it was ready to act "more forcefully" if needed. It last hiked by more than 50-basis points in 1998, when it was defending the currency.

"We know inflation is keeping Canadians up at night. It's keeping us up at night," the Bank of Canada's Senior Deputy Governor Carolyn Rogers said in Toronto in reaction to the figures.

"We will not rest easy until we get (inflation) back down to target... That's why we're raising interest rates, and we're raising them quite aggressively," she added.

The Fed hiked U.S. rates by 75-bps this month, a move economists said Canada was "extremely likely" to follow on July 13, considering May's data.

"The Bank will need to deliver at least 75 basis points to reassert to markets and Canadians that it has the fortitude to deliver sufficiently substantive monetary tightening to wrestle inflation down," said Jay Zhao-Murray, market analyst at Monex Canada.

Canadian prices rose more in May than in April in every province, led by higher pump prices and bolstered by higher services costs. Excluding gasoline, the annual rate rose 6.3% up from 5.8% in April, Statscan said.

"It is fairly clear that the pressures are spreading out and risking becoming much more entrenched," said Doug Porter, chief economist at BMO Capital Markets.

Energy prices rose 34.8% on an annual basis, while grocery price gains matched April's increase at 9.7% and shelter cost inflation also matched April at 7.4%. Prices for services rose more in May than in April, led by hotels and restaurants.

CPI common, which the central bank calls the best gauge of the economy's performance, hit 3.9%, beating forecasts of 3.5% and matching a July 1991 high. CPI median and trim, at 4.9% and 5.4% respectively, were the highest on record.

The Canadian dollar was trading 0.3% lower at 1.2956 to the greenback, or ​77.18 U.S. cents as oil prices tumbled.

© Thomson Reuters 2022 All rights reserved.