Inflation hits highest level in nearly four decades

By: Thomas I. Likness
Eagle News Service

(Eagle News) — Canadians are digging deeper to cover the cost of living as the country’s inflation rate hit 7.7% in the month of May.

The biggest culprit is gasoline prices, Statistics Canada said Wednesday.

“Compared with May 2021, consumers paid 48.0% more for gasoline in May, stemming from high crude oil prices, which also resulted in higher prices for fuel oil and other fuels,” an agency release read.

It says on a month-to-month bases, gasoline prices increased 12%.

It cost shoppers nearly 10% more to fill a grocery cart as food purchased from stores rose 9.7%.

The biggest increases were for cooking oils at 30%.

Fresh vegetable prices are up 10.3%.

And fresh and frozen fish prices rose 11.7%.

Meat prices increased at a slower rate at 9.0%.

Shelter costs are up 7.4% from a year earlier.

With inflation at this level, it’s likely Canadians will see higher interest rates.

Most economists expect the Bank of Canada to raise its benchmark rate by three-quarters of a percentage point next month.
(Eagle News Service)