The Canadian Statistics Agency said on Wednesday that the annual inflation rate rose to its highest level in nearly 40 years in May, driven by rising gasoline prices.

The agency said the consumer price index in May rose by 7.7 percent compared to last year, the largest increase since January 1983 when it rose by 8.2 percent from an increase of 6.8 percent in April this year.

The gains came as energy prices rose by 34.8 percent compared to last year, with gasoline prices up 48.0 percent compared to last year.

The Canadian Statistics Agency said crude oil prices rose in May due to the ongoing war in Ukraine, as well as increased demand as travel continued to grow in response to eased COVID-19 restrictions.

Excluding gasoline, the annual inflation rate in May rose to 6.3 percent compared to 5.8 percent in April.

The high inflation rate comes as the Bank of Canada works to bring it under control. The central bank has raised its main interest rate target three times so far this year to 1.5 percent, and said it is ready to "act more forcefully" if necessary, leading economists to speculate it might triple the interest rate hikes.

A quarter percentage point next month and the average of the three core inflation measures closely monitored by the Bank of Canada rose to 4.73 percent in May compared to 4.43 percent in April.

The Canadian Statistics Agency said the price of food purchased in stores rose by 9.7 percent compared to last year, matching the increase in April, as almost everything in the groceries became more expensive.

The cost of edible fats and oils rose by 30.0 percent compared to last year, the largest increase ever, mainly driven by rising cooking oil prices.

Fresh vegetable prices rose by 10.3%. The cost of services in May rose by 5.2 percent compared to last year, up from 4.6 percent in April, as Canadians traveled and dined out more frequently.

The prices of traveler accommodations rose by 40.2 percent compared to last year, while the price of foods purchased from restaurants rose by 6.8 percent.

Here is what happened in the provinces (previous month in parentheses):

Newfoundland and Labrador: 8.0 percent (6.6)

Prince Edward Island: 11.1 percent (8.9)

Nova Scotia: 8.8 percent (7.1)

New Brunswick: 8.8 percent (7.6)

Quebec: 7.5 percent (6.8)

Ontario: 7.8 percent (6.9)

Manitoba: 8.7 percent (7.5)

Saskatchewan: 7.0 percent (5.9)

Alberta: 7.1 percent (6.3)

British Columbia: 8.1 percent (6.7)

The Canadian Statistics Agency also released rates for major cities, but warned that the numbers could be widely volatile as they are based on small statistical samples (previous month in parentheses):

St. John's, NL: 7.1 percent (6.0)

Charlottetown - Summerside: 11.7 percent (9.5)

Halifax: 8.4 percent (6.6)

St. John, NB: 8.6 percent (7.3)

Quebec City: 6.7 percent (5.8)

Montreal: 6.9 percent (6.7)

Ottawa: 7.6 percent (6.8)

Toronto: 7.4 percent (6.6)

Thunder Bay, Ontario: 4.9 percent (5.1)

Winnipeg: 8.5 percent (7.3)

Regina: 7.2 percent (5.7)

Saskatoon: 6.6 percent (5.7)

Edmonton: 7.1 percent (6.1)

Calgary: 8.0 percent (7.1)

Vancouver: 8.2 percent (6.6)

Victoria: 8.2 percent (6.9)

Whitehorse: 7.2 percent (5.8)

Yellowknife: 7.5 percent (7.0)

Iqaluit: 3.5 percent (3.5)