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.

Just Posted

Nine animals find fur-ever homes after special Parksville SPCA event

Province-wide half-price adoption deal homes 212 animals

Man, 50, dies following incident in downtown Parksville

Teenage girl hailed as hero for intervening after witnessing situation unfold

BCHL’s Alberni Valley Bulldogs move game to Parksville due to ice rink closure

Prince George and Bulldogs to battle it out Tuesday, Nov. 19 at Oceanside Place

Teen with cancer whose viral video urged Canadians to vote has died, uncle tweets

Maddison Yetman had been looking forward to voting in her first federal election since junior high school

Rowing Canada, UVic investigate celebrated coach for harassment, abuse

Lily Copeland says she felt intimidated and trapped by Williams

Fisherman missing near Lake Cowichan’s Shaw Creek

Family is asking for everyone and anyone to keep their eyes open,… Continue reading

BC VIEWS: Action needed on healthcare workplace violence

While we’ve been talking about it, the number of B.C. victims has only grown

Poole’s Land finale: Tofino’s legendary ‘hippie commune’ being dismantled

Series of land-use fines inspire owner Michael Poole to sell the roughly 20-acre property.

Port Alberni mom takes school district to court over Indigenous smudging, prayer in class

Candice Servatius, who is an evangelical Christian, is suing School District 70

MacLean says “Coach’s Corner is no more” following Cherry’s dismissal from Hockey Night

Cherry had singled out new immigrants in for not honouring Canada’s veterans and fallen soldiers

Closing arguments begin in B.C. case launched in 2009 over private health care

Dr. Day said he illegally opened the Cambie Surgery Centre in 1996 in order to create more operating-room time

Cleanup in the works after tanker truck fire leads to oil spill in B.C.’s Peace region

The province said the majority of the spilled oil likely burned away in the fire.

Most Read