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Inflation rate soars to 7.7 per cent

Gas prices have increased 48 per cent over the past year.

OTTAWA — Gas prices were a key factor in pushing Canada's inflation rate to a nearly four-decade high in May.

Statistics Canada reported Wednesday that the national inflation rate last month was 7.7 per cent.

This is the largest yearly increase since January 1983 and up from a 6.8 per cent  gain in April.

The federal agency said the cost of gasoline rose 12.0 per cent from April.

Compared with May 2021, Canadian consumers paid 48.0 per cent more for gasoline in May, stemming from high crude oil prices, which also resulted in higher prices for fuel oil and other fuels.

Grocery prices remained elevated in May as prices for food purchased from stores rose 9.7 per cent, matching the gain in April. With price increases across nearly all food products, Canadians reported food as the area in which they were most affected by rising prices.

Supply chain disruptions, as well as higher transportation and input costs, continued to put upward pressure on prices.

In Thunder Bay, the inflation rate was 4.9 per cent last month.

Statistics Canada cautions, though, that rates for individual cities may fluctuate widely because they are based on small statistical samples.

 

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