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

The price of fresh vegetables in Canada was up almost 17 per cent in May 2019 compared to a year earlier, according to Statistics Canada.
The price of fresh vegetables in Canada was up almost 17 per cent in May 2019 compared to a year earlier, according to Statistics Canada. Getty Images

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.

READ MORE: Here’s how a family of 4 could save $3K in groceries every year

However, drivers paid 3.7 per cent less for gasoline compared with a year ago.

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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.

WATCH: Slicing restaurant spending in order to boost savings

Money 123: slicing restaurant spending in order to boost savings
Money 123: slicing restaurant spending in order to boost savings