Canada’s inflation up 2.4 per cent in May, largest gain since October

Statistics Canada says 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. The rise compared with a 2.0 per cent increase in April.

Economists had expected an increase of 2.1 per cent for May, according to Thomson Reuters Eikon.

All eight major components of the index rose compared with a year ago. Food prices rose 3.5 per cent as fresh vegetable prices climbed 16.7 per cent, while transportation prices gained 3.1 per cent as the cost of air transportation added 8.9 per cent.

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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.

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