Economics
Inflation Jumps to 4.1% in Canada, Jolting Trudeau Campaign
- Surge in housing costs is big driver of annual price increases
- Travel-related prices spiked amid summer reopening of economy
Tourists visit Niagara Falls, Ontario after Canada eased travel restrictions in early August.
Photographer: Cole Burston/BloombergThis article is for subscribers only.
Inflation in Canada accelerated to the fastest pace since 2003, a political headache for Prime Minister Justin Trudeau only five days before an election.
The consumer price index rose 4.1% in August from a year earlier, Statistics Canada reported Wednesday in Ottawa, marking the fifth consecutive month of inflation readings above the Bank of Canada’s 3% cap. That’s the highest since March 2003, when it touched 4.2%. Economists were predicting a yearly gain of 3.9%. A surge in housing costs has been a key driver in annual inflation.