Canada: Inflation slows in May
June 17, 2016
Seasonally-adjusted consumer prices recorded a 0.2% increase in May over the previous month, matching April’s reading. According to Statistics Canada, six of the eight components of the index increased over the previous month, while the food component declined and the health and personal care component was flat..
Inflation was 1.5% in May, down from 1.7% in April. May’s result was marginally below market expectations and remains within the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in May inched up from April’s tally of 1.3% to 1.4%, its highest reading since July 2015. Core inflation, which excludes volatile items such as gasoline and fresh food, inched down from 2.2% in April to 2.1% in May.
Author: Christopher Mc Innes, Economist