Inflation rate hike hits home for Toronto-area mom - Action News
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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, says she is being careful with money to make sure her 15-month-old daughter has everything she needs.

Inflation rate jumped 6.7% in March year-over-year, Statistics Canada says

Prudence Nkwamen, who works at home in a high-rise condo in Markham, Ont., says inflation is making savings harder, and she's not able to minimize costs. (Submitted by Prudence Nkwamen)

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 andbuying 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 jumped6.7 per cent in March year-over-year, Statistics Canada reported. The March increase in the consumer price index was the highestsince January 1991, when inflation increased6.9 per cent andthe GST was introduced.

Statistics Canada saidprices 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 theincrease 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, saidhe thinks inflation has become a real concern.

Theformer parliamentary budget officersaid he thinks people are sitting around the kitchentable 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 theincrease is historic and it's likely the numbers will drift upwards before they comedown. He said consumers should expect to deal with high prices for the next year or year and a half.

"As consumersmanagingshrinking disposable incomes, they're going to have to kind of find ways that they cando 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 gasprices increased 11.8 per cent month-over-month in March. The increase cameafter a 6.9 per cent rise in February. Year-over-year, peoplepaid 39.8 per centmore for gasin 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 thisinflation is making saving harder..

"It'sa challenge right now. And there are other expenses, even before we considermy 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."

With files from CBC News Network and The Canadian Press