The Toronto skyline in Canada

Canada Inflation May 2022

Canada: Inflation in May comes in at highest level since 1983

Consumer prices rose a record-high seasonally-adjusted 1.07% from the previous month in May, picking up from the 0.88% increase logged in April. Looking at the details of the release, prices for housing and food grew at a weaker rate in May, while prices for transportation increased at a much sharper pace.

Inflation rose to 7.7% in May from April’s 6.8%. May’s result marked the highest inflation rate since January 1983. Meanwhile, the trend pointed up, with annual average inflation coming in at 5.1% in May (April: 4.8%). Lastly, core inflation rose to 6.1% in May, from the previous month’s 5.7%.

On the inflation and monetary policy outlook, TD Economics’ Leslie Preston said:

“We are not expecting much of a reprieve going forward. Inflation is expected to remain elevated through 2022 as outlined in our recent forecast. On the shelter side, we are likely to see a continuation of rent price increases alongside rising mortgage interest costs. This will be balanced against the impact of declining house prices. All of this re-enforces the view that the Bank of Canada will hike by 75 basis points (bps) on July 13th, following in the Fed’s footsteps.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest