Canada's Consumer Price Index climbed to 5.6% February, according to the latest figures released today by Statistics Canada. This follows on the heels of a 5.1% increase in January. Prior to 2022, the largest gain was 30 years ago at over 6%.
Inflation has been rising for months due to challenges with global supply chains. Last month's invasion of Ukraine has amplified concerns over the supply of fuel and resources in many parts of the world. Inflation is higher than it has been in Canada since 1991 with food, shelter and transportation at the forefront of the increases.
However, experts say Canada's economy remains solid and will be able to weather the storm. There is speculation that the Bank of Canada will raise its interest rates by half a point in April to cool demand. The last increase was in March raising it a quarter point to .5%.
"Despite rising inflation and intensifying geopolitical risks, domestic economic data is expected to look firm," states a report issued by RBC Economics.