Canada inflation hits 8.1 per cent year over year in June

The cost of living in Canada continues to rise, with the latest figures showing yet another increase in the consumer price index (CPI).

Statistics Canada says the inflation rate hit 8.1 per cent in June 2022 on a year-over-year basis.

#Breaking Canada June Inflation accelerates to 8.1% y/y (est. up 8.4%)
-Largest CPI increase since Jan. 1983
-Core inflation (ex food/energy) sees a record increase of 5%

(Source: Stats Canada)

— Mike Eppel (@eppman) July 20, 2022

The CPI was 7.7 per cent in May, with the agency noting the increase between the two months was the “largest yearly change since January 1983.” That was the year the last episode of M*A*S*H aired, the year Michael Jackson introduced the moonwalk, and the year Microsoft Word was released.

The boost was mainly because of higher gas prices, which rose more than 50 per cent compared with a year ago, though Statistics Canada notes increases “remained broad-based with seven of eight major components rising by 3 per cent or more.”

Meanwhile, on a monthly basis, Statistics Canada says the inflation rate rose 0.7 per cent last month, after a 1.4 per cent increase in May. That was largely due to rising prices for travel accommodations, as well as, once again, gasoline.

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“The return of sporting events, festivals and other large in-person gatherings has resulted in higher demand for accommodation, particularly in major urban centres,” Statistics Canada said.

In addition to gas prices and travel, Canadians also continued to see higher food prices in June, with the cost of food up 8.8 per cent last month over the same time last year.

The rise in inflation comes amid ongoing concerns from people and businesses across the country. In an effort to address rising inflation, the Bank of Canada has been hiking its key interest rate, the last increase being a full percentage point — the largest single increase since 1998.

-With files from The Canadian Press