Pushed by higher gas prices, Canada's annual inflation rate increased by 3 per cent in July, Its highest reading since 2011.

Statistics Canada says the consumer price index for July jumped 3 per cent, after economists predicted a year-over-year inflation rate of 2.5 per cent.

All 8 major areas of the consumer price index rose, including Transportation, Gasoline, cost of air transportation, restaurants and mortgage.

Telephone service costs were down 5.1 per cent, however, along with 4.1per cent for traveller accommodations.