Canada’s annual inflation rate climbed to 8.1% in June, boosted by the rising cost of gasoline, which increased by more than 50% compared with a year ago, according to Statistics Canada.
As per a report, the inflation rate in June was up from 7.7% in May–the biggest annual change since January 1983.
Excluding gasoline, the inflation rate was 6.5% in June, compared to 6.3% in May.
With the ease of public health restrictions and more people traveling in June, the price of travel-related services increased. Prices for accommodations increased by around 50% across the country compared to last year.
The return of sporting events, festivals, and other large in-person gatherings has resulted in higher demand for accommodation, particularly in major urban centers,” Statistics Canada said.
On a month-over-month comparison, the consumer price index increased by 0.7%, primarily due to rising gasoline and travel accommodations prices.
After a slight decline in May, air transportation prices increased by 6.4% month-over-month.
Canadians also continued to see an increase in food prices, with food costs increasing to 8.8% compared to June last year.
Of all food items, the most significant price increase was seen for edible oils and fats, which increased by 28.8% year over year.
As consumers and businesses raise concerns that high inflation will persist for several years, the Bank of Canada is ratcheting its efforts against rising inflation.
In its most recent rate decision, the central bank opted to hike its key interest rate by a full percentage point, the largest single increase since 1998.
This story originally appeared on Construct Connect.
It’s important to consider how the surge in inflation might impact household budgets. With increasing gas and travel-related costs, individuals and families may need to adjust their budgeting strategies and find compassionate measures to cope with these changes.
It’s essential to review expenses and possibly cut back on non-essentials. Maybe try meal planning or carpooling to save a few bucks. Remember, small changes can add up. And hey, if you need more tips, just ask!
With Canada’s inflation rate spiking, it’s time to rethink our spending habits. Let’s stay informed on market trends and seek financial guidance to weather this economic storm effectively.