Inflation In Canada Is The Highest It's Been In 30 Years — Here's What's Costing More

There's no way easy way to put it, but living in Canada is getting expensive. Statistics Canada announced on January 19 that inflation is not only up, but on the rise, increasing in December 2021 to its highest rate since 1991.

The federal agency revealed that the Consumer Price Index (CPI), which "represents changes in prices as experienced by Canadian consumers," was up 4.8% compared to the year before. That's also compared to a 4.7% year-over-year increase in November 2021.

So, what does this all mean, exactly? Higher prices for everything from food to household appliances.

Statistics Canada identifies supply chain disruptions, unfavourable weather conditions, and rising construction costs as some of the reasons for these price increases.

Grocery prices rose 5.7% year over year, the biggest jump since November 2011, the federal agency says. Fresh fruit prices increased by 5.6% overall. Apples increased in price by 6.7% since 2020, oranges by 6.6% and bananas by 2.5%.

Prices for durable goods, defined as "a product that can be used repeatedly or continuously over a period of more than one year," ranging from new vehicles to household appliances, also experienced a major price jump.

"Consumers who purchased a new vehicle in December paid 7.2% more than those who did so in December 2020, as the global shortage of semiconductor chips continued to elevate prices," Statistics Canada says.

Similarly, consumers who purchased household appliances (refrigerators, freezer, laundry machines etc.) in December 2021 dished out 8.9% more than those who did in December 2020.

It's also no surprise that the cost of housing has drastically jumped over the years. Well, Statistics Canada is pointing to climate change as a potential reason for the increasing costs of insurance.

The agency said that Canadian homeowners paid 9.3% more for home and mortgage insurance in December 2021, possibly due to an "increase in the frequency and severity of weather-related claims."

Gas prices were up 33.3% in December 2021 compared to December 2020, but down 4.1% compared to November 2021, according to Statistics Canada.