Statistics Canada reports annual pace of inflation rises in May to 2.4%

Transportation prices gained 3.1 per cent as the cost of air transportation added 8.9 per cent

Statistics Canada in Ottawa. (The Canadian Press)

The annual pace of inflation picked up in May as the consumer price index rose 2.4 per cent compared with a year ago, its largest increase since October last year, Statistics Canada said Wednesday.

The move compared with a 2.0 per cent increase in April and was the fourth straight month of rising year-over-year increases. Economists had expected an increase of 2.1 per cent for May, according to Thomson Reuters Eikon.

READ MORE: Canadian inflation rises in April; gas prices strengthen from carbon pricing

Broad-based gains helped boost prices in all eight of major components of the index compared with a year ago.

Food prices rose 3.5 per cent as fresh vegetable prices climbed 16.7 per cent, the largest year-over-year increase since February 2016.

Transportation prices gained 3.1 per cent as the cost of air transportation added 8.9 per cent and the cost of passenger vehicles rose 4.2 per cent. Passenger vehicle insurance premiums rose 8.1 per cent.

However, drivers paid 3.7 per cent less for gasoline compared with a year ago.

Excluding gasoline, the consumer price index increased 2.7 per cent compared with a year ago, compared with a 2.3 per cent increase in April.

The rise in prices put inflation ahead of the Bank of Canada’s ideal target for inflation of 2.0 per cent.

The Bank of Canada, which adjusts its key interest rate to keep inflation in check, has kept rates on hold in recent months after the economic weakness at the end of 2018 and the start of this year.

However, the central bank has been predicting the economy will pick up.

The Statistics Canada report said the average of its three gauges for core inflation, which are considered better measures of underlying price pressures because they omit volatile items like gasoline, rose to 2.07 per cent compared with 1.90 per cent in April.

Craig Wong, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Rio Tinto responds to U.S. aluminum import tariffs

The tariffs were imposed by President Donald Trump Aug. 6

Black bear spotted at Christy Park in Terrace

Bear could be the same individual spotted on the bench recently

Coastal GasLink breaks ground on meter station in Kitimat

Meter station marks final point on pipeline that stretches from Northeast B.C.

Signs of the times: Terrace sign makers’ businesses evolve during COVID-19 pandemic

Scaife Signs and Silvertip Promotions & Signs Inc. created COVID-19 related materials in Terrace

New statue placed at George Little Park in Terrace

Kermode bear cub to commemorate Terrace Kinsmen’s contribution to the park’s renovations

Canada to match donations to Lebanon relief

Canada is directing all of its aid for this crisis directly to humanitarian organizations, not the Lebanese government

Researchers find cannabis use in pregnancy linked to greater risk of autism

Researchers caution findings only show association — not cause and effect

Small Manitoba town mourning after well-liked teens killed by tornado

Melita residents feeling profound grief after the deaths of Shayna Barnesky and Carter Tilbury

Antonio Banderas says he’s tested positive for coronavirus

Acclaimed actor celebrating his 60th birthday in quarantine

Bear put down after being found on Vancouver Island kitchen counter

Bear trapped and killed near Ucluelet after repeated instances of entering sheds and homes

Who can dismiss the Governor General? A look at protocols and possibilities

The Governor General is appointed by the Queen, on the advice of the prime minister

Second phase of NHL draft lottery set for Monday

Each club eliminated from qualifying round has a 12.5 per cent shot at the No. 1 pick

University of Victoria, rowing coach sued over alleged ‘fat shaming’ and verbal abuse

Lawsuit says Barney Williams subjected coxswain Lily Copeland to offensive and belittling language

1 year since a B.C. teen died in a skate park, his family still waiting for charges

Carson Crimeni’s final moments were broadcast on social media

Most Read