Canada’s annual inflation rate increases to 8.1% in June

The inflation rate in Canada rose to 8.1 per cent in June compared with a year ago.

This is the largest yearly change since January 1983.

Statistics Canada’s reading on inflation for May reached a 39-year high of 7.7 per cent.

The agency said rising gas prices contributed to the increased inflation rate last month.

In comparison to a year ago, gas prices were up more than 50 per cent.

In its most recent rate decision, the Bank of Canada increased its key interest by a full percentage point to 2.5 per cent.