Canadian Consumer Price Index Increases 3.6% Year-Over-Year in May

Statistics Canada (StatsCan) is reporting that on a year-over-year basis the Canadian Consumer Price Index (CPI) rose 3.6% in May, up from a 3.4% gain in April. This is largest yearly increase since May 2011. Excluding gasoline, the CPI rose 2.5% year-over-year. The monthly CPI rose 0.5% in May 2021, the same growth rate as in April. On a seasonally adjusted monthly basis, the CPI rose 0.4% in May.

Prices rose in every major component on a year-over-year basis. Shelter prices rose 4.2% year over year in May, the largest yearly increase since September 2008. Prices for durable goods rose 4.4% year over year, the fastest pace since 1989, against the backdrop of rising consumer confidence and low interest rates. Year over year, prices rose more in May than in April in seven provinces. Year-over-year price growth was strong in the Atlantic provinces, as prices for fuel oil and rent increased.