Consumer prices in Canada continued to rise in May 2022, where year-on-year inflation reached 7.7%. That’s the biggest annual increase since January 1983, according to the latest Statistics Canada data released on Wednesday.
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Excluding gasoline, the consumer price index (CPI) rose by 6.3% year-on-year in May, exceeding the 5.8% increase recorded in April 2022 (+4.7%).
Statistics Canada estimates that price hikes remain widespread, putting pressure on Canadians’ wallets, and “in some cases [ont] Impact on their ability to meet their daily expenses.
The acceleration in growth in May is mainly due to higher gasoline prices, up 12% compared to April 2022, and higher prices for services such as hotels and restaurants.
“According to labor force survey wages data, average hourly wages rose 3.9% year-on-year in May, meaning that the price increase exceeded that of wages on average over the previous 12 months,” the federal agency noted.
Between April and May, CPI rose 1.4% in May after rising 0.6% in April.
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The increasingly expensive shopping basket and petrol
Year on year, Canadians paid 9.7% more for groceries bought in stores in May.
“Disruptions in the supply chain and rising transportation and input prices continued to put upward pressure on prices,” Statistics Canada said.
In particular, edible fats and oils (+30%) recorded a record increase, mainly due to the increase in edible oil prices.
Gasoline prices rose 12% in May after falling 0.7% in April. This is the largest monthly increase since May 2020, according to Statistics Canada.
Year on year consumers had to pay 48% more to fill up with petrol in May.
In Quebec, the CPI rose 7.5% year-on-year. On a monthly basis, it rose by 1.4% between April and May.
The people of Prince Edward Island are grappling with the country’s worst inflation rate, which hit 11.1% year-on-year, followed by Nova Scotia and New Brunswick (8.8%) and Manitoba (8.7%).