Canada Inflation Rate Up to 0.7% in May

Canadian Consumer Price Index (CPI) rose 0.7 percent in the 12 months to May, following a 0.4 percent increase in April driven by higher shelter and food costs.
Statistics Canada | Duarte Ricardo | 6/21/2013 2:15:33 PM
Shelter costs rose 1.3 percent in the 12 months to May, matching the increase in April. In addition to natural gas, rent and property taxes rose on a year-over-year basis. In contrast, mortgage interest cost declined 4.1 percent.

Food prices rose 1.3 percent year over year in May, after increasing 1.5 percent in April. Compared with May 2012, consumers paid more for food purchased from stores, notably fresh vegetables (+5.8 percent) and bakery products (+3.9 percent). Prices for fresh fruit and meat also rose in the 12 months to May, although at a slower rate than in April.

Transportation prices fell 0.5 percent in May compared with the same month a year earlier, following a 2.1 percent decrease in April. The smaller decline in the transportation index was led by gasoline prices, which fell less in the 12 months to May (-1.5 percent) compared with April (-6.0 percent). Prices for the purchase of passenger vehicles also decreased year over year in May.

Prices for alcoholic beverages and tobacco products advanced 2.5 percent on a year-over-year basis in May, led by higher prices for cigarettes in most provinces. Consumers also paid 2.1 percent more for alcoholic beverages purchased from stores, notably beer.

On a seasonally adjusted monthly basis, the CPI edged up 0.1% in May after declining 0.4% in April.

Canada Inflation Rate Up to 0.7% in May