According to Statistics Canada, the annual inflation rate in May surged to its highest level in nearly 40 years, according to Statistics Canada.
According to the agency, the consumer price index in May rose 7.7% year-on-year, the largest rise since January 1983’s 8.2% rise, up from 6.8% in April this year.
This increase was seen as energy prices rose 34.8% compared to a year ago and gasoline prices rose 48.0% compared to a year ago.
According to Statistics Canada, oil prices rose in May due to increased demand as travel continued to increase in response to the ongoing war in Ukraine and deregulation of COVID-19.
Excluding gasoline, annual inflation in May rose from 5.8% in April to 6.3%.
Inflation rises occur when the Bank of Canada is working to bring it back into control.
The central bank has raised its key interest rate target three times so far this year to 1.5%, saying it is ready to “act stronger” if necessary, and economists say it will triple interest rates. It led to speculation that it could be done. Next month will be a quarter percentage point.
The average of the three major inflation indicators, which the Bank of Canada closely monitors, rose from 4.43% in April to 4.73% in May.
According to Statistics Canada, the price of food purchased in stores rose 9.7% compared to a year ago, consistent with the rise in April, as the cost of almost all grocery carts rose.
The cost of edible fats and oils has increased by 30.0% compared to a year ago. This was the largest increase ever, mainly due to rising prices of cooking oil. Fresh vegetable prices have risen 10.3 percent.
Service costs in May increased by 5.2% from 4.6% in April to a year ago due to frequent trips to restaurants and meals by Canadians.
Prices for tourist accommodation have risen 40.2% compared to a year ago, and prices for food purchased from restaurants have risen 6.8%.