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Inflation Surges to 7.7% in Canada, Fastest Pace Since 1983

  • Price pressures add urgency for aggressive interest rate hikes
  • Trudeau government facing calls to do more to help households
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Explain This: Inflation
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Consumer price inflation accelerated to a four-decade high, adding pressure on the Bank of Canada to deliver more aggressive interest rate hikes in coming weeks.

Annual inflation rose to 7.7% last month, up from 6.8% in April, Statistics Canada reported Wednesday in Ottawa. That’s the highest since January 1983 and well above economist expectations for a 7.3% increase. The inflation gauge rose 1.4% from a month earlier with gasoline, hotel rates and cars among the largest contributors to the gains in May.