The global geopolitical situation has hit the Canadian economy

Statistics Canada recorded the fastest rate of increase in consumer prices since 1983. It said Canada's annual inflation rate accelerated to 7.7% in May, beating April's 0.9% rate and beating analysts' forecasts by 0.5%.

The acceleration in May was largely due to growth in gasoline prices, which rose 12.0% from April 2022. Higher hotel and restaurant prices, about 6.8%, also contributed to the increase.

Food prices rose up to 9.7 percent as a result of supply chain disruptions, high demand, drought and an unstable geopolitical environment.

Meanwhile, the wage survey shows that the average hourly rate rose by 3.9% in May. Nevertheless, on average, prices rose faster than wages over the past year.

The Canadian government is taking all possible measures to improve the situation and contain inflationary pressures.

Senior Deputy Governor Carolyn Rogers of the Bank of Canada told reporters that the May figures were not unexpected and was quick to assure, "We know inflation keeps Canadians up at night, it keeps us up at night, and we will not rest until we get it back."

Meanwhile, consumer price growth in the U.S. is breaking all records, showing an unprecedented 8.6%, the highest level since December 1981.