Canada's inflation rate rose to 3.2% in May

Canada's annual inflation rate edged up to 3.2 per cent in May, according to Statistics Canada.

The high cost of gas, driven by an oil shortage due to the war in Iran, was still the driving force behind the uptick, according to Statistics Canada. The price of gasoline rose at a faster pace in May, with prices increasing 33.2 per cent on a year-over-year basis, compared to 28.6 per cent in April.

Excluding the impact of gasoline prices, the consumer ‌price index still posted a higher increase of 2.2 per cent in May from two per cent in April, led by the elevated cost of food, recreation and alcoholic beverages.

Prices for fresh fruit rose by 5.3 per cent compared to the month prior, while the cost of fresh vegetables rose 5.5 per cent in May. Tomatoes in particular soared by 45.2 per cent, which the data agency said was due to poor weather and less planting of the crops in Mexico.

Analysts polled by Reuters had estimated ​the annual inflation rate to touch three per cent in May, up ​from 2.8 per cent in April.

More to come