OTTAWA, June 22 Reuters Canadian consumer prices increased in May at rates not seen since January 1983, surging past analyst forecasts, largely driven by pricey gasoline, official data showed on Wednesday, upping the pressure on the central bank to hike rates more forcefully

Canada39;s annual inflation rate accelerated to 7.7 in May, galloping past April39;s 6.8 and analyst forecasts of 7.4, data from Statistics Canada showed. Inflation has now been above the Bank of Canada39;s 2 target for 15 months.

It39;s clear that central banks have been losing sleep over inflation … with this report, they39;ll need to renew their sleepingpill prescriptions, said Jimmy Jean, chief economist at Desjardins Group.

We39;re really in persistent mode. And that39;s what has central banks on high alert, he added. That39;s why the Fed decided to move 75 basis points. And we think the Bank of Canada will be doing the same.

The Bank of Canada raised interest rates to 1.5 from 1.0 this month and said it was ready to act more forcefully if needed to tame inflation. Money markets see about an 80 change of a very rare 75bp increase on July 13. 

Economists said the surprisingly high May print make a supersized move extremely likely.

Canadian prices rose more in May than in April in every province, led by higher prices at the pump and bolstered by higher services costs. Excluding gasoline, the annual rate rose 6.3 up from 5.8 in April, Statscan said.

It wasn39;t just the 12 rise in…