In less than a week before Canadians cast their ballots in a close federal election race pitting Prime Minister Justin Trudeau’s Liberal Party against the Conservatives led by Erin O’Toole, the latest figures on Canada’s inflation are troubling.
Consumer prices in August rose 4.1 percent over the same period last year. This price growth rate, which is well above the Bank of Canada target of 2 percent, was stronger than many analysts had expected and marked the highest annual inflation rate since March 2003.
Inflation hits the wealthiest households the most because it eats up a larger portion of their income, especially when prices rise for essential goods and services that can not be bought later — such as food, fuel, and housing.
Inflation last month was driven mainly by gasoline and house prices. Gasoline prices rose nearly 32.5 percent, while the home replacement cost index, which reflects rising prices for new homes, rose 14.3 percent in August over the past twelve months.
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