Canada Inflation Hits 3.2% in May as Gasoline Jumps 33.2%
Updated
Updated · CBC Sports · Jun 22
Canada Inflation Hits 3.2% in May as Gasoline Jumps 33.2%
3 articles · Updated · CBC Sports · Jun 22
Summary
3.2% annual inflation in May marked Canada’s highest reading since late 2023, topping the 3.0% pace expected by analysts and rising from 2.8% in April.
33.2% year-over-year gasoline inflation drove much of the increase, with Statistics Canada tying higher pump prices to an oil shortage linked to the war in Iran.
4.3% food inflation added to the pressure as fresh fruit prices rose 5.3%, vegetables climbed 9.0%, and tomato prices surged 45.2% amid poor weather and reduced planting in Mexico.
2.2% inflation excluding gasoline still accelerated from 2.0%, though shelter costs slowed to 1.7% and core measures stayed near the Bank of Canada’s 2% target.
Recent easing in pump prices could pull the next headline reading lower, but economists said inflation above 3% remains a mild disappointment because food costs are still persistent.