Canada's Inflation Down to 1.2% in May

Consumer prices rose 1.2% in the 12 months to May, following a 2.0% increase in April. This 0.8 percentage point difference was mostly attributable to declines for gasoline prices. Decreases in clothing prices as well as slower price gains for the purchase of passenger vehicles were also factors., Statistics Canada 6/22/2012 8:18:36 PM

The energy index fell 1.6% in the 12 months to May, its first year-over-year decline since October 2009. Natural gas prices (-16.6%) continued to post declines. Gasoline prices decreased 2.3%, after 22 months of year-over-year increases. In contrast, electricity prices continued to rise.

Excluding energy, the Consumer Price Index (CPI) rose 1.7% in the 12 months to May after increasing 2.1% in April. For the second consecutive month, the CPI excluding energy increased at a faster rate than the All-items CPI.