Canada's annual inflation rate gallops to near 40-year high at 7.7%

The rate of price increases galloped past April's and beat analyst predictions

Canada's annual inflation rate unexpectedly accelerated to 7.7% in May, the highest since January 1983, largely driven by higher gasoline prices, Qazet.az reports according to statistics Canada data.

The rate of price increases galloped past April's 6.8% and beat analyst predictions of 7.4%. The month-over-month gain of 1.4%, driven again by high gasoline prices, was also ahead of forecast.

Prices rose more in May than in April in every province, led by higher prices at the pump and bolstered by higher services costs. Excluding gasoline, the annual rate rose 6.3%, up from 5.8% in April, Statscan said.