Statistics Canada says the country’s annual inflation rate in July was up three per cent on a year-over-year basis, its highest reading since September 2011.
The agency says the consumer price index was pushed up by higher gasoline prices and air transportation costs.
Inflation figures released Friday shows gasoline prices were up 25.4 per cent for consumers and airfare climbed 28.2 per cent compared to a year ago.
Statistics Canada says inflation in Victoria was 2.6 per cent in July, compared to 2.1 per cent in June, while the rate reached 3.3 per cent in B.C.
The annual inflation in the province was 2.7 per cent in June.
The result is higher than what economists had predicted, expecting the year-over-year cost rise to be 2.5 per cent.
But the average of core inflation, which leaves out volatile prices like gasoline, went up to 2.0 per cent compared to 1.96 per cent in June.
Bank of Montreal Capital Markets economist Benjamin Reitzes calls July’s inflation increase a one-off event, adding the overall backdrop on inflation hasn’t changed much.
With files from the Canadian Press.