Inflation rate highest in 8 years
May numbers show Canada is seeing the largest annual increase in consumer prices in eight years.
The inflation rate is now at 3.7 per cent, up from 3.3% in April and well above the Bank of Canada’s 2% target.
Gas prices are still the main reason behind high inflation.
Prices at the pump rose by almost 30% on a year-to-year basis.
But other items also showed sizable gains.
In may food prices were up more than 4% from a year ago.
Core inflation, which excludes volatile items like energy and some kinds of food, rose more modestly to 1.8%, and remains below the Bank of Canada’s target.
