Canadian consumers got hit again.
Prices increased 8.1 percent in June 2022 compared to a year ago.
Statistics Canada noted in a report Wednesday (July 20) that this was the biggest annual hike since January 1983.
Worse, inflation outpaced wages.
Statistics Canada reported that on average, prices rose faster than hourly wages, which increased 5.2 percent in the 12 months to June.
The 8.1 percent annual increase in June followed the 7.7 percent gain in May 2022.
The increase last month was mainly due to gasoline prices, which rose 54.6 percent.
Food prices went up 8.8 percent, and shelter, 7.1 percent.
For more details, see here.
The Bank of Canada has increased interest rates in a bid to rein in inflation.
The central bank’s interest-setting rate now stands at 2.5 percent, up two percent from the pandemic-era low of 0.25 percent.
The Bank of Canada is widely anticipated to further raise its rate in September.
The interest-rate hikes have lead to more expensive mortgages, resulting in a slowdown in the Canadian real-estate market.