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Higher gas prices push inflation rate highest in eight years

OTTAWA (NEWS1130) – Statistics Canada says consumer prices rose to the highest level in eight years in May, taking the annual inflation rate to 3.7 per cent.

On a month-to-month basis, prices rose 0.7 per cent in May from April. The agency says gasoline prices were the main reason behind the big increase.

Prices at the pump rose by 29.5 per cent on a year-to-year basis; that’s an even higher jump than what occurred during Hurricane Katrina in 2005. But other items also showed sizable gains, including prices for food purchased at stores, which rose 4.2 per cent from a year ago.

Regionally, the inflation rate was higher in eight of the 10 provinces, with Nova Scotia recording the greatest annual increase at 4.6 per cent.