Canada inflation quickens to 8.1%, keeping up rate-hike pressure

Consumer price inflation accelerated in June to the highest level since January 1983, maintaining pressure on the Bank of Canada to continue delivering aggressive interest rate hikes.

The consumer price index rose 8.1 per cent from a year earlier, Statistics Canada data showed Wednesday. The inflation gauge increased 0.7 per cent from a month earlier.

Both numbers were lower than expected, with economists anticipating gains of about 8.4 per cent annually and 0.9 per cent monthly, according to the median estimate in a Bloomberg survey.

The increase in the annual pace of inflation past the 8 per cent mark will keep the Bank of Canada on its tightening path, though the numbers show some evidence of softening. That could stoke expectations that price pressures may be peaking.