Canada: Inflation picks up in May from the prior month
Latest reading: Consumer prices were up 3.2% in annual terms in May, following a 2.8% increase in the previous month. May’s reading was the strongest since December 2023. The reading was above market expectations and the Central Bank’s 1.0–3.0% inflation target range.
Relative to the previous month’s data, there were higher price pressures for transportation (+8.0% in annual terms vs +7.1% in April), food (+3.8% vs +3.7% in April) and recreation and culture (+2.8% vs +1.0% in April). In contrast, there were reduced price pressures for housing (+1.7% vs +1.8% in April) and clothing and footwear (+1.3% vs +1.8% in April).
Meanwhile, core consumer prices rose 2.2% on a year-on-year basis in May, following a 2.1% increase in the prior month.
Finally, consumer prices rose 0.95% in May on a month-on-month basis, following a 0.36% increase in the prior month.