Inflation in Canada

Canada Inflation | Economic News & Forecasts

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  

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Canada Inflation Chart


Canada Inflation
Note: Annual variation of consumer price index (CPI) in %.
Source: Statistics Canada.

Canada Facts

Value Change Date
Bond Yield1.701.00 %Dec 31
Exchange Rate1.300.15 %Jan 01

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