Inflation is rising again in Justin Trudeau's Canada. In October, the inflation rate shot up to 4.7 percent amid a worsening cost of living crisis.
In September the inflation was recorded at 4.4 percent. Currently, Canada's inflation is the worst recorded since 2003, according to Reuters.
Statistics Canada has said that although prices are increasing everywhere, transportation is becoming particularly expensive. The price of gasoline is said to be a major factor behind this.
Canadians are also feeling the pressure of rising food prices. Meat prices, for instance, have risen by ten percent. "Labour shortages that have slowed down production, ongoing supply chain challenges and rising prices for livestock feed continued to factor into higher prices for meat," said Statistics Canada.
the Bank of Canada governor suggested that inflation will run close to 5 percent, according to Blacklock's Reporter.
This is a steeper forecast than what the Bank of Canada was originally expecting, although the governor has not yet suggested that interest rates will be raised to counteract the inflation.
The Bank of Canada has promised to keep prices under control, yet did not explain how they would attempt this. On top of this, the Canadian economy (although growing) is not recovering nearly as quickly as officials predicted.
The Trudeau government has pledged $78 billion in new spending over the course of the next five years. This is in addition to the $101 billion that the prime minister has already committed in his previous budget.
Despite this, Trudeau claimed on the campaign trail that when he thinks "about the biggest, most important economic policy this government, if re-elected, would move forward. You’ll forgive me if I don’t think about monetary policy."