Statistics Canada’s measure of rising consumer prices in May recorded the biggest increase since 1983, the agency said. Wages increased 3.9 per cent, so on average, workers fell farther behind. (The Logic)

Talking point: Prices rose in all the categories StatCan uses, versus 2021, but if there’s a glimmer of good news, the agency found prices of food and shelter were stable in May versus the previous month. The biggest price increases were in fuel (gasoline was up 48 per cent in a year, and fuel oil nearly doubled) and services, especially for hotels (up 40.2 per cent, as travel restrictions eased). The Bank of Canada warned early this month that it expected inflation to rise beyond April’s rate of 6.8 per cent. Its next interest-rate announcement is due July 13, when the key question will be whether the bank brings in a 0.5 per cent hike or matches the U.S. Federal Reserve’s 0.75 per cent increase to try to tamp down consumer demand. In a talk Wednesday, the bank’s senior deputy governor, Carolyn Rogers, said its interest-rate power is a blunt instrument and it’s aware of the pain rate hikes can cause, but the top priority is to get inflation down.