Inflation reaches 8.1% in June in Canada

The Consumer Price Index (CPI) rose 8.1% year over year in June in Canada, up from the 7.7% increase recorded in May.

Statistics Canada says this is the strongest annual increase in inflation observed in more than 39 years, since January 1983.

In Quebec, the increase was 8%, slightly below the national average, but in the three Maritime provinces it was above average: 9.3% in Nova Scotia, 9.1% in New Brunswick and 10.9% in Prince Edward Island.

The federal agency reports that the acceleration in year-over-year growth in June in Canada was mainly attributable to the 54.6% increase in gasoline prices. In fact, the increase for the transportation sector as a whole was 16.8%

However, Statistics Canada observed that price increases remained broad-based, with seven of the eight major components rising 3% or more.

This was particularly the case for food, 8.8%, and housing, 7.1%.

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