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Published: July 20, 2022
The annual inflation rate in Canada rose to 8.1 percent in June, supported by rising gas prices, which increased by more than 50 percent compared to last year, according to Statistics Canada on Wednesday. The inflation rate in June increased from 7.7 percent in May and was the largest annual change since January 1983. Excluding gasoline, the inflation rate was 6.5 percent in June compared to 6.3 percent in May.
With the easing of public health restrictions and more people looking to travel in June, the cost of travel-related services increased.
Accommodation prices rose by about 50 percent across the country compared to last year.
Statistics Canada said: "The return of sporting events, festivals, and other large personal gatherings has increased demand for accommodation, especially in major urban centers."
On a monthly basis, the Consumer Price Index rose by 0.7 percent, largely due to rising gasoline prices and travel comforts.
After a slight decrease in May, air transportation costs rose by 6.4 percent monthly. Canadians also continued to face rising food prices, with food costs up 8.8 percent compared to June of last year.
Among food items, the largest increase was in edible fats and oils, which rose by 28.8 percent year over year.
Facing consumer and business concerns over continued high inflation for several years, the Bank of Canada is stepping up its efforts against rising inflation.
In the latest interest rate decision, the central bank chose to raise the key interest rate by a full percentage point, the largest single increase since 1998.
Here is what happened in the provinces (previous month in parentheses):
- Newfoundland and Labrador: 8.2 percent (8.0)
- Prince Edward Island: 10.9 percent (11.1)
- Nova Scotia: 9.3 percent (8.8)
- New Brunswick: 9.1 percent (8.8)
- Quebec: 8.0 percent (7.5)
- Ontario: 7.9 percent (7.8)
- Manitoba: 9.4 percent (8.7)
- Saskatchewan: 8.1 percent (7.0)
- Alberta: 8.4 percent (7.1)
- British Columbia: 7.9 percent (8.1)
The agency also released rates for major cities but warned that the figures could be widely volatile as they are based on small statistical samples (previous month in parentheses):
- St. John's, N.L: 7.5 percent (7.1)
- Charlottetown - Summerside: 11.5 percent (11.7)
- Halifax: 9.1 percent (8.4)
- Saint John, N.B: 9.0 percent (8.6)
- Quebec City: 7.4 percent (6.7)
- Montreal: 7.6 percent (6.9)
- Ottawa: 7.7 percent (7.6)
- Toronto: 7.4 percent (7.4)
- Thunder Bay, Ontario: 6.6 percent (4.9)
- Winnipeg: 9.4 percent (8.5)
- Regina: 8.1 percent (7.2)
- Saskatoon: 7.6 percent (6.6)
- Edmonton: 8.5 percent (7.1)
- Calgary: 9.6 percent (8.0)
- Vancouver: 7.7 percent (8.2)
- Victoria: 8.4 percent (8.2)
- Whitehorse: 7.7 percent (7.2)
- Yellowknife: 8.3 percent (7.5)
- Iqaluit: 4.3 percent (3.5)
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