Inflation Rises Again in Canada
CPI Jumps 0.8% in June
The Consumer Price Index (CPI) rose 0.8% in June compared to the previous month and 6.8% year-over-year, Statistics Canada reported on Wednesday. This marks the highest annual inflation rate since January 1983.
The increase was driven largely by rising gasoline prices, which surged by 9.8% in June. Groceries also continued to climb in price, with a monthly increase of 0.6%.
The core CPI, which excludes volatile items like food and energy, also increased by 0.5% in June. This suggests that underlying inflationary pressures are still strong.
The Bank of Canada has been raising interest rates aggressively in an effort to cool inflation. However, Wednesday's CPI report suggests that the central bank may need to continue its aggressive rate hiking campaign.
The rising cost of living is putting a strain on Canadian households. Many families are struggling to make ends meet and are having to cut back on spending.
The government has announced a number of measures to help Canadians cope with the rising cost of living, including a one-time payment to low- and middle-income families. However, some economists argue that more needs to be done to address the issue of inflation.
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