Inflation in Canada is at its highest level in 40 years

According to a poll conducted by the agency Bloomberg News on Saturday, Canada’s inflation rate is likely to have reached its highest level in nearly 40 years.

Canadian statistics released next week are expected to show that the consumer price index in May (May and June) increased by 7.3% compared to last year. This is Canada’s highest annual inflation rate since 1983, and will strengthen the central bank’s determination to raise interest rates by 75 points at the next meeting.

In the report of the Statistics Office of this country on Wednesday, for the first time, the prices of second-hand cars have been mentioned and also a larger share of fuel prices has been given in the basket of goods and services. Annual price increases are said to have reached 6.8 percent in April (April and May), the highest in three decades.

On the other hand, the Bank of Canada has warned that inflation will rise in the short term and officials have consistently adjusted their forecasts for inflation last year to a higher figure. The institution is currently pursuing strict policies, and its interest rate is likely to reach 2 to 3 percent. This index, which was in the range of 0.25 percent until March (March), has now reached 1.5 percent after increasing as a result of three consecutive sessions.

Many economists believe that the Bank of Canada will soon follow the pattern of the Federal Reserve to sharply increase interest or borrowing costs.