Canadian consumer prices increased in May at rates not seen since January 1983, adding pressure to the Bank of Canada to hike rates more forcefully.
According to Statistics Canada, the county’s annual inflation rate accelerated to 7.7% in May after reporting a 6.8% increase in April.
High gasoline prices had a major impact after they rose by 12%t in May. The increase from a year ago reaches 48%.
Data from Statscan also showed that grocery bills increased by 9.7%t over the past year.
The Bank of Canada raised interest rates to 1.5% from 1.0% this month and said it was ready to act “more forcefully” if needed to tame inflation.
After the inflation report was released Bank of Canada Senior Deputy Governor Carolyn Rogers said the Central Bank is not ruling out a 75-basis-point increase in July.
“We know inflation is keeping Canadians up at night. It’s keeping us up at night,” Rogers said at an event organized by the Globe and Mail newspaper, according to Reuters.
Canadian woes add to the U.S. efforts to tame inflation as rising prices are felt also on the other side of the Atlantic.
Britain’s inflation rate hit 9.1% in May, a new 40-year high and up slightly from the previous month.
According to the Office for National Statistics consumer price inflation rose slightly from 9% in April, the highest level since 1982.