Canada: Inflation ticks up in May
June 19, 2015
In May, consumer prices rose a seasonally-adjusted 0.4% over the previous month, which contrasted April’s 0.1% decrease and represented the highest figure since February 2013. According to Statistics Canada, seven of the eight components of the index increased, with the exception being clothing and footwear.
Annual headline inflation inched up from April’s reading of 0.8% to 0.9% in May, narrowly overshooting market expectations by 0.1 percentage points. As a result, inflation remains below the target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in May came in at 1.6%, which was slightly below April’s reading of 1.7%. Annual core inflation, which excludes volatile items such as gasoline and fresh food, inched down from 2.3% in April to 2.2% in May.
Author: Robert Hill, Economist