Year-over-year inflation rose at its fastest pace since May 2011, the agency said Wednesday. Gasoline prices in April were up 62.5 per cent on a year-over-year basis, the largest annual increase Statistics Canada has on record. Removing gasoline prices, Statistics Canada says annual inflation for April would have clocked in at 1.9 per cent. (Trevor Pritchard/CBC)The inflation rate is the biggest factor that the Bank of Canada considers when setting its benchmark interest rate. Typically, the bank cuts its rate to stimulate the economy when the inflation rate is too low, and it raises its benchmark lending rate to cool things down when inflation is too high.

Source: CBC News May 19, 2021 13:18 UTC