Canada's annual consumer inflation rises 2.9% in May, up from 2.7% gain in April

Consumer price index at 0.6% on monthly basis, also up from 0.5% gain in previous month

By Ovunc Kutlu

ISTANBUL (AA) - Canada's consumer inflation annually came in at 2.9% in May, higher than the market estimates of 2.6%, and gaining pace from a 2.7% year-on-year gain in April, the country’s statistical authority said Tuesday.

The figure, however, reflects a significant slowdown since the 8.1% annual gain recorded in June 2022 -- the highest level for the consumer price index (CPI) in 39 years.

"Acceleration in the headline CPI was largely due to higher prices for services, which rose 4.6% in May following a 4.2% increase in April," Statistics Canada said in a statement.

"Faster price growth for services was led by cellular services, travel tours, rent and air transportation," it said, noting that prices for goods grew 1% in May, at the same rate as in April.

On a monthly basis, the consumer price index was at 0.6% in May, also coming above the market estimates of 0.3%.

The monthly figure, in addition, accelerated from a 0.5% increase in April.

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