Annual inflation in Canada reached 7.7 percent in May 2022, up from 6.8 percent in April. The rate of price growth has become the highest in almost 40 years – since 1983, according to the country’s statistical office.
Excluding the cost of gasoline, which rose 12 percent m/m and 48 percent y/y, consumer prices rose a seasonally adjusted 6.3 percent in May after rising 5.8 percent in April. Inflation excluding food and electricity prices hit a 30-year high of 5.2 percent.
Moreover, the category “electricity” saw the most significant growth – plus 34.8 percent compared to the same period in 2021. The Bureau of Statistics explains that crude oil prices rose in May due to increased demand and volatility in energy markets amid the war in Ukraine.
In annual terms, in May, prices on average grew faster than the wages of the population. Bloomberg notes that this state of affairs can greatly hinder the country’s economic growth.
Record price increases are observed in the US, the UK, as well as throughout Europe. The increase in prices in the United States in May was a record since December 1981, amounting to 8.6 percent. At the same time, annual inflation in the eurozone accelerated to 8.1 percent in May. This is the seventh consecutive record – in April, the figure reached 7.4 percent. The main contribution is made by the rise in the price of energy carriers.