OTTAWA – Statistics Canada says the consumer price index was up 3.6 per cent compared with a year ago, marking its largest annual increase since May 2011.
The reading for May compared with a year-over-year gain of 3.4 per cent in April, which at the time was the fast annual rate in nearly a decade.
Excluding gasoline, the consumer price index in May was up 2.5 per cent compared with a year ago.
-Canada May Inflation rate up 3.6% y/y (est. up 3.5%)
-Core CPI up 2.3%
-y/y Gas prices up 43%
-Home replacement costs up 11% (highest since 1987)
-furniture prices up 9.8% (biggest jump since 1982)
— mike eppel (@eppman) June 16, 2021
Part of the rise in the headline inflation barometer is due to comparing prices to the low levels seen last year at the start of the COVID-19 pandemic, such as for gasoline, furniture and beef products.
However, Statistics Canada says the increase in year-over-year price growth in May was led by rising prices for housing and passenger vehicles.
The Bank of Canada expects inflation to hover around three per cent over the summer before easing later this year, then returning toward the bank’s two-per-cent target.
Meanwhile, on a monthly basis, the inflation rate rose 0.5 per cent last month, the same as in April.
We’ll have more to come in Business at :26 and :56.