Canadian Consumer Price Index Rises 3.2% Year-Over-Year in May

On Monday, Statistics Canada (StatCan) reported that the Canadian Consumer Price Index (CPI) rose 3.2% year-over-year in May, up from a 2.8% increase in April.

On a monthly basis, the CPI rose 1.0%. Seasonally adjusted, the index increased 0.5%, largely due to gains in the recreation, education, and reading, and transportation components.

Gasoline prices rose 33.2% year-over-year in May, compared with a 28.6% increase in April. Supply uncertainty stemming from the conflict in the Middle East, specifically the closure of the Strait of Hormuz, put upward pressure on gasoline prices for the third consecutive month, StatCan said. Consumers paid the highest prices for gasoline since June 2022, when Russia’s invasion of Ukraine created supply uncertainty.

Year-over-year, prices rose at a faster pace in all provinces in May compared with April, with gasoline driving the acceleration across all provinces.