Canadian Consumer Price Index Continued its Upward Trek in May 2023

Statistics Canada (StatsCan) reported today (6-27-23), that the Consumer Price Index (CPI) in Canada rose 3.4% year-over-year in May, following a 4.4% increase in April. The May increase in the CPI is the smallest since June 2021.

StatsCan notes that the slowdown is largely attributed to lower year-over-year price for gasoline, down 18.3%, resulting from a base-year effect. Excluding gasoline, the CPI rose 4.4% in May following a 4.9% increase in April.

On a monthly basis, the CPI was up 0.4% in May, following a 0.7% increase in April. The largest contributors to the month-over-month increase were mortgage interest costs and travel service, which include traveler accommodations and travel tours. On a seasonally adjusted monthly basis, the CPI increased 0.1%.

StatsCan is reporting that in May grocery prices rose 9.0% year-over-year. This increase was still more than double the rate of headline inflation and nearly unchanged from the 9.1% increase posted in April. The highest year-over-year increases among grocery items included edible fats and oils – up 20.3%, bakery product – up 15.0%, and cereal products – up 13.6%.