Inflation in Canada jumps to 8.1%, hitting a 39-year high

Statistics Canada said the annual inflation rate in Canada accelerated to 8.1% in June, the highest level since January 1983, mainly due to higher gasoline prices.

The Federal Agency said that fuel price was the largest contributor to the increase in the overall rate, as the price of motor gasoline increased by 54.6% compared to the same month last year.

Another major source of inflation this year is food prices, which rose 8.8% last year. This is the same pace of increase as the previous month.

“The resurgence of sporting events, festivals and other large personal gatherings has increased the demand for accommodation, particularly in major urban centres,” Statistics Canada said.

Accommodation prices are up nearly 50% across the country from last year, and the cost of air transportation is up 6.4% per month, and up 25% compared to last year.