Inflation in Canada starts to rise: Statistics Canada

Soaring energy and gas prices over the past year have led to the biggest annual increase in the Consumer Price Index (CPI) since 2003, Statistics Canada reports.
The CPI tracks prices related to core living expenses such as food, shelter, transportation clothing, health and recreation, to name a few. The rise in the CPI suggests Canada may now be facing the inflationary pressures that have been uppermost in the minds of insurers for the past two years.
A higher cost of living results in increased claims costs for insurers, since insurers provide for these basic necessities as specified in the contracts they have with their insureds.
Statistics Canada data released on June 29, 2011 shows consumer prices rose 3.7% between May 2010 and May 2011, “the largest increase since March 2003.”
The increase was primarily due to gas prices increasing by 29.5% over the past year, “the largest increase since September 2005 when prices rose in the aftermath of Hurricane Katrina,” Statistics Canada observed.
Also, Canadian consumers paid 5% more in passenger vehicle insurance premiums between May 2010 and May 2011, StatsCan reports.