Statistics Canada reports annual pace of inflation rises in May to 2.4%

Transportation prices gained 3.1 per cent as the cost of air transportation added 8.9 per cent

Statistics Canada in Ottawa. (The Canadian Press)

The annual pace of inflation picked up in May as the consumer price index rose 2.4 per cent compared with a year ago, its largest increase since October last year, Statistics Canada said Wednesday.

The move compared with a 2.0 per cent increase in April and was the fourth straight month of rising year-over-year increases. Economists had expected an increase of 2.1 per cent for May, according to Thomson Reuters Eikon.

READ MORE: Canadian inflation rises in April; gas prices strengthen from carbon pricing

Broad-based gains helped boost prices in all eight of major components of the index compared with a year ago.

Food prices rose 3.5 per cent as fresh vegetable prices climbed 16.7 per cent, the largest year-over-year increase since February 2016.

Transportation prices gained 3.1 per cent as the cost of air transportation added 8.9 per cent and the cost of passenger vehicles rose 4.2 per cent. Passenger vehicle insurance premiums rose 8.1 per cent.

However, drivers paid 3.7 per cent less for gasoline compared with a year ago.

Excluding gasoline, the consumer price index increased 2.7 per cent compared with a year ago, compared with a 2.3 per cent increase in April.

The rise in prices put inflation ahead of the Bank of Canada’s ideal target for inflation of 2.0 per cent.

The Bank of Canada, which adjusts its key interest rate to keep inflation in check, has kept rates on hold in recent months after the economic weakness at the end of 2018 and the start of this year.

However, the central bank has been predicting the economy will pick up.

The Statistics Canada report said the average of its three gauges for core inflation, which are considered better measures of underlying price pressures because they omit volatile items like gasoline, rose to 2.07 per cent compared with 1.90 per cent in April.

Craig Wong, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Lacombe police arrest men with meth, fentanyl, weapons during traffic stop

Suspects found with illicit drugs, a rifle with the serial numbers removed, cash, cell phones

LPS responds to break and enter at Lacombe Centre Mall

Suspects steal laptops, tablets, hard drives and audio/video receivers and cash

Lacombe Councillor speaks against red light/speed cameras in the city

Counc. Hoekstra said ATE is a ‘big brother strategy’ that will not fully address speeding issue

1.4% tax increase included in Lacombe budget draft

Average household to see $5.25/month increase from tax rate/utilities rate changes

North Red Deer Regional Wastewater System receives 2019 APWA Public Works Project of the Year Award

Public Works Project of the Year Award promotes management, administration of public works

WATCH: 6th Bill’s Trail Run welcomes over 450 runners

Run advocates for the use and upkeep of Lacombe’s trails

Fewer people prescribed opioids in Canada. but some provinces lack data: doctors

Patients who began taking opioids were prescribed smaller doses for shorter duration

Frustration and pride in Canada after a year of legal pot

It’s one year into Canada’s experiment in legal marijuana, and hundreds of legal pot shops have opened

Suspect wearing Batman cap sexually assaults woman on Main Street Wetaskiwin

Wetaskiwin RCMP Investigate Sexual Assault – Seek Information and ID suspect

A year after pot legalization in Canada, it’s a slow roll

It’s one year into Canada’s experiment in legal marijuana, and hundreds of legal pot shops have opened

Pot use admission at U.S. border snagging Canadian boomers, says lawyer

A waiver to enter the U.S. can cost $2,000 and isn’t a guarantee

Health concerns over vaping cast haze over Canadian cannabis market expansion

More than 1,000 people in the United States, and a handful in Canada, have developed a lung ailment

Alberta government won’t seek meeting with teen enviro-activist Greta Thunberg

NDP Opposition Leader Rachel Notley urged Alberta’s United Conservatives to meet with Thunberg

Alberta to join B.C.’s class-action lawsuit against opioid manufacturers, distributors

B.C. government claims opioids were falsely marketed as less addictive than other pain meds

Most Read