Canada Inflation Rate Steady at 2.2% in May

The annual inflation rate in Canada stood at 2.2 percent in May of 2018, the same as in the previous month, missing market expectations of 2.5 percent. Higher prices for shelter and transportation were offset by slowing cost of food, household equipment, clothing & footwear.

Year-on-year, prices advanced faster for shelter (2.0 percent from 1.7 percent in April); transportation (5.6 percent from 4.7 percent), on higher cost of gasoline (22.9 percent from 14.2 percent); and they rebounded for recreation and culture (1.7 percent from -0.2 percent).

Meanwhile, inflation slowed for: food (1.0 percent from 1.8 percent);  household operations, furnishings and equipment (0.3 percent from 1.4 percent); clothing & footwear (0.8 percent from 2.2 percent); health (1.5 percent from 1.6 percent) and alcoholic beverages & tobacco (4.6 percent from 4.9 percent).

On a monthly basis, consumer prices edged up 0.1 percent, compared to a 0.3 percent increase in April and market expectations of a 0.3 percent gain.

The BoC's annual core inflation, which excludes volatile items, eased to 1.3 percent from 1.5 percent in April, missing market expectations of 1.4 percent.

Canada Inflation Rate Steady at 2.2% in May

Statistics Canada | Luisa Carvalho |
6/22/2018 1:39:22 PM