Inflation rate hike hits home for Toronto-area mom

For a Markham, Ont. mother of one, Canada's inflation rate means having to make sacrifices.

Prudence Nkwamen, who works at home in a high-rise condo, says she is being careful with her money to make sure her 15-month-old daughter, Serena Dior, has everything she needs. 

That means eating restaurant food less, spending less on her own personal needs and buying fewer expensive items at the grocery store. Nkwamen says higher prices at the pump mean she is less inclined to use a car and is opting for cheaper ways of getting around. 

"This is a drastic concern for me right now," Nkwamen told CBC News Network on Wednesday. "We have to prioritize the baby's needs and make sure that she's good to go."

Canada's inflation rate jumped 6.7 per cent in March year-over-year, Statistics Canada reported. The March increase in the consumer price index was the highest since January 1991, when inflation increased 6.9 per cent and the GST was introduced.

Statistics Canada said prices rose across all eight major components: food; shelter; household operations, furnishings and equipment; clothing and footwear; transportation; health and personal care; recreation, education and reading; and alcohol, tobacco and cannabis.

The federal agency said the increase comes as the housing market remains hot, supply chain problems persist and Russia continues its war in Ukraine, a conflict that has affected energy, commodity and agricultural markets.

Kevin Page, president and CEO of the Institute of Fiscal Studies and Democracy at the University of Ottawa, said he thinks inflation has become a real concern.

The former parliamentary budget officer said he thinks people are sitting around the kitchen table asking themselves questions.

"'How are we going to deal with these higher food prices? How are we going to deal with the higher gas prices?' You can't avoid them," he told CBC News Network on Wednesday. 

"People are trying to adjust their budgets for this stuff."

Page said the increase is historic and it's likely the numbers will drift upwards before they come down. He said consumers should expect to deal with high prices for the next year or year and a half.

"As consumers managing shrinking disposable incomes, they're going to have to kind of find ways that they can do little shortcuts, adjust their food budgets, travel in different ways, use public transit, ride your bicycle more. We're all going to have to adjust over the next year."

Transportation costs pushing up price of groceries

Statistics Canada said gas prices increased 11.8 per cent month-over-month in March. The increase came after a 6.9 per cent rise in February. Year-over-year, people paid 39.8 per cent more for gas in March, the federal agency said.

Grocery store prices rose 8.7 per cent year-over-year, the fastest annual rate since March 2009.

"Increases in input prices and transportation costs continued to put upward pressure on grocery prices," Statistics Canada said.

As for Nkwamen, all this inflation is making saving harder..

"It's a challenge right now. And there are other expenses, even before we consider my baby's needs," she said.

"I'm not able to minimize costs. I'm making those sacrifices in order to meet up with the day-to-day care of my household."