The upward pressure came largely from increases in the costs associated with owned accommodation, as well as higher gasoline prices. These were partially offset by a decline in the price of natural gas.
The Bank of Canada's core index followed a similar trend as the one posted by the all-items excluding energy. It rose 2.2% in May 2007 over May 2006, a marked slowdown from the 2.5% increase in April. This index is used by the Bank of Canada to monitor the inflation control target. The 12-month change in this index has remained above 2.0% since July 2006.
On a monthly basis, the all-items index rose by 0.4% between April and May 2007, smaller than the 0.5% increase posted between March and April. Higher gasoline prices accounted for most of the upswing.
The all-items index without energy components rose by 0.3% in May after posting a 0.2% increase in April.
On a monthly basis, the Bank of Canada core index rose 0.3% between April and May 2007, faster than the 0.1% gain between March and April.