Statistics
Canada reported on Tuesday the country’s consumer price index (CPI) climbed
0.6 per cent m-o-m in May,
following an unrevised 0.5 per cent m-o-m increase in the previous month.
On a y-o-y
basis, Canada’s inflation rate demonstrated a 2.9 per cent surge last month, accelerating from an
unrevised 2.7 per cent in April.
Economists had expected that inflation would rise by 0.3 per cent m-o-m and 2.6 per cent y-o-y in May.
According to
the report, the May acceleration in the headline CPI was mainly due to a quicker
price growth for services (+4.6 per cent y-o-y compared to +4.2% y-o-y in April).
Meanwhile, prices for goods (+1.0 per cent y-o-y) grew at the same pace as in the
previous month.
Meanwhile, the trimmed-mean
CPI – the preferred measure of core inflation of the Bank of Canada - jumped
2.9 per cent y-o-y in May, following a downwardly revised 2.8 per cent y-o-y soar
(from +32.9 per cent y-o-y) in April. This was the weakest annual gain since July
2021 (+3.1 per cent y-o-y). Economists had forecast an advance
of 2.8 per cent y-o-y.