Thunder Bay – LIVE – The prices of a lot of things have gone up over the past year.
You can see the impact of this as the inflation rate begins to show the impact of rising prices as it increases.
Statistics Canada reported that the Consumer Price Index (CPI) rose 4.1% year over year in August, the fastest pace since March 2003, up from a rise of 3.7 % in July.
The rise in prices is mainly the result of a buildup of recent price pressures and lower price levels in 2020. Excluding gasoline, the CPI rose 3.2% year over year.
The monthly CPI rose 0.2% in August, compared with 0.6% in July. On a seasonally adjusted monthly basis, the CPI increased 0.4%.
Soaring natural gas prices
This winter, the cost of heating your home with natural gas could skyrocket.
“The spot price for natural gas last September was US $ 1.92 / MMBtu. This month, even before winter, the average is $ 5.00 MMBtu with prices climbing to $ 6.24, ”according to Dan McTeague, who monitors gasoline and fuel prices.
Gasoline Prices Rise
Year over year, gasoline prices rose 32.5% in August, according to Statistics Canada. This is mainly due to lower production in oil-producing countries from pre-pandemic levels. The low price levels seen in August 2020 also contributed to the year-over-year increase.
Gasoline prices rose 0.4% month over month in August. Upward pressure on prices at the end of the monthHas part of offshore production has been suspended due to Hurricane Ida-was partially offset by slowing global demand due to concerns over the rise of the Delta variant of COVID-19.
Cotton prices jump 28%
The price of a pair of jeans is also likely to increase. US cotton futures topped US $ 1 a pound for the first time in ten years. Adverse weather conditions and shipping issues have impacted supply, which will drive up clothing costs around the world.
The price of cotton has jumped 28% this year amid continued disruptions in supplies due to the pandemic and logistical chaos spurred by rising transportation costs.
The higher prices for cotton lint mean that the cost of making clothes will increase. Retailers may try to pass these expenses on to customers, resulting in inflation for everything from T-shirts to jeans.
The comfy Levi jeans and the Wrangler jeans that so many people love are probably a lot more expensive.
Coffee prices rise
The price of a cup of coffee is also expected to skyrocket. Poor harvests in Brazil and other producing areas resulted in a shortage as demand continued to rise.
US $ 1 per pound was the normal price for coffee futures. This is the cost for large buyers who agree to pay for coffee on delivery in the future.
This represents a doubling of the price since July.
Wholesale market coffee prices now have their high costs unprecedented since 2014.
Coffee drinkers are already paying US $ 8 or more for a bag at the supermarket or up to US $ 5 for a cup of specialty coffees in department stores.
Wood prices have fallen
There is a silver lining for consumers. The price of lumber has stabilized at pre-pandemic prices in many cases.
While the price of a 2 × 4 climbed to over C $ 12 at the height of the price spike, that price in Canada has now fallen to around C $ 4.
The main reason is economic. At the highest prices, consumer demand fell. When demand fell, prices fell.