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Inflation up 3.6 per cent annually in May

Last Updated Jun 16, 2021 at 5:56 am PDT

FILE - Statistics Canada building and signs are pictured in Ottawa on Wednesday, July 3, 2019. THE CANADIAN PRESS/Sean Kilpatrick

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.

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.