Economists predict inflation climbed even higher in June

Economists are predicting an even higher reading of inflation for June as energy and food prices crept higher and the economy reopened further.

The consumer price index in Canada hit a nearly 40-year high of 7.7 per cent in May. Now, economists are forecasting that number hit at least eight per cent last month.

Statistics Canada will release inflation data for June on Wednesday, a week after the Bank of Canada raised its key interest rate by a full percentage point.

Prices have been soaring globally for everything from food to furniture to gasoline, as pandemic restrictions have eased. Energy prices skyrocketed 35 per cent year-over-year, while food prices rose by about 10 per cent.