Consumer prices rose 8.1% in June, fueled by high gasoline costs
Canada joined the US and the UK in seeing its year-on-year inflation hit 40-year highs in June. The Consumer Price Index hit 8.1% year-on-year in June, following a 7.7% gain in May, Statistics Canada reported on Wednesday, adding that the increase was the largest annual change since January 1983.
The acceleration in June was mainly due to higher gasoline prices, which rose 54.6% year-over-year, the statistics agency explained. Hourly wages failed to catch up with inflation, rising just 5.2% compared to the same period last year, Statistics Canada added.
Although at a nearly 40-year high, Canada’s June inflation rate remains below levels seen in the US (9.1%, the largest increase since 1981) and the UK ( 9.4%, the largest increase since 1982). Inflation has been on the rise in developed nations amid a worsening energy crisis caused by crude oil and natural gas supply shortages which, in turn, has been exacerbated by international sanctions against Russia, a major exporter. of fossil fuels.