Inflation in Canada
Canada - Inflation
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.”
FocusEconomics analysts project inflation to average 5.6% in 2022, which is up 0.4 percentage points from last month’s forecast. In 2023, our panel sees inflation averaging 2.8%.
Canada - Inflation Data
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Inflation Rate (CPI, annual variation in %) | 1.1 | 1.4 | 1.6 | 2.3 | 1.9 |
Canada Inflation Chart
Source: Statistics Canada.
Canada Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 1.70 | 1.00 % | Dec 31 |
| Exchange Rate | 1.30 | 0.15 % | Jan 01 |
Sample Report
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Economic News
-
Canada: Inflation in May comes in at highest level since 1983
June 22, 2022
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.
-
Canada: House price growth remains elevated in May, but slowdown likely ahead
June 17, 2022
According to the Teranet-National Bank Composite House Price Index, house prices increased 2.3% month-on-month in May.
-
Canada: Housing starts rise in May
June 15, 2022
Housing starts rose to 287,257 units on a seasonally-adjusted annualized rate (SAAR) basis in May according to the Canada Mortgage and Housing Corporation (CMHC), up 8% from April’s reading.
-
Canada: Manufacturing PMI improves in May
June 1, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 56.8 in May, up from April's 56.2.
-
Canada: Bank of Canada continues to raise rates in June
June 1, 2022
On 1 June, the Bank of Canada (BoC) raised its target for the overnight rate to 1.50% from 1.00%, marking the third consecutive rate hike this year.
© Copyright: 2022. | Canada Inflation | Privacy Policy | Cookies Policy | Terms & Conditions | Sitemap | RSS feed
