Canada: Inflation ticks up in May to reach seven-month high
Consumer prices increased a seasonally-adjusted 0.3% from a month earlier in May, matching April’s figure. According to Statistics Canada, the uptick was mostly driven by higher prices for transport, and recreation and education.
Inflation jumped up to 2.4% in May (April: 2.0%) on higher food inflation, beating market analysts’ projections of a 2.1% outturn and consequently landing above the midpoint of the Central Bank’s target range of 1.0% to 3.0%. Meanwhile, annual average inflation edged higher to 2.2% in May (April: 2.1%).
Looking ahead, inflation should remain within the Bank’s target range, supported by a solid labor market, a recovery in economic activity and the impact of a carbon tax that took effect in April this year.