Canada Inflation Rate Accelerates in May



Canadian consumer prices rose 2.3 percent year-on-year in May of 2014, up from 2 percent in the previous month and reaching the highest rate in 27 months. Energy cost surged 8.4 percent in the 12 months to May, matching the rise in April.

Prices for gasoline increased 6.3 percent in the 12 months to May, while natural gas prices advanced 21.3 percent. Electricity prices rose 7.0 percent year over year in May, following a 4.6 percent rise in April. The faster rise in the electricity index was led by a gain in Alberta. At the national level, consumers also paid 12.7 percent more for fuel oil in May.

Excluding energy, the CPI advanced 1.7 percent year over year in May, after rising 1.4 percent the previous month.

Shelter costs increased 3.4 percent in the 12 months to May. In addition to natural gas, electricity and fuel oil, consumers paid more in property taxes. The mortgage interest cost index rose 0.2 percent year over year in May. However, on a monthly basis, the mortgage interest cost index fell 0.1 percent in May, the first decrease since August 2013.

Transportation costs rose 2.7 percent year over year in May. In addition to higher prices for gasoline, prices for the purchase of passenger vehicles increased 2.0 percent, after rising 1.5 percent in April.

Food prices increased 2.3 percent in May compared with the same month a year earlier. This gain followed a 1.9 percent rise in April. Prices for food purchased from stores rose 2.5 percent year over year in May, after increasing 1.7 percent in April. Meat prices led the faster rise, advancing 8.0 percent on a year-over-year basis in May, following a 4.5 percent gain in April. Prices for both fresh vegetables and fresh fruit rose 8.5 percent. Consumers paid 2.1 percent more for food purchased from restaurants in the 12 months to May.

On a monthly basis, consumer prices rose 0.5 percent in May, faster than a 0.3 percent increase in the previous month. 

Canada Inflation Rate Accelerates in May


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
6/20/2014 1:43:06 PM