Canada's annual inflation rate spiked to 8.1 per cent in June according to new data from Statistics Canada (Stats Can). It's the largest yearly change in 39 years.

The climbing inflation rate came largely from gas prices, which were up over 50 per cent when compared to a year ago, Stats Can says in its report on Wednesday, July 20. Excluding the cost of gasoline, the Consumer Price Index (CPI) in the country was up by 6.5 per cent.

Stats Can also says that "On average, prices rose faster than hourly wages, which increased 5.2% in the 12 months to June, based on data from the Labour Force Survey."

Housing costs have now slowed in the country, however, largely due to higher mortgage interest rates after the Bank of Canada increased its prime lending rate last week.

"Other owned accommodation expenses rose less year over year in June (+12.2%) than in May (+14.8%), driven by the first month-over-month decrease since August 2019," Stats Can says. "This reflects lower real estate commissions as housing prices ease from early 2022 highs. The homeowners replacement cost index also increased at a slower pace year over year in June (+10.0%) compared with May (+11.1%), further moderating the increase in the shelter index."

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