Statistics Canada reports annual pace of inflation rises in May to 2.4%

Transportation prices gained 3.1 per cent as the cost of air transportation added 8.9 per cent

Statistics Canada in Ottawa. (The Canadian Press)

Statistics Canada in Ottawa. (The Canadian Press)

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, Statistics Canada said Wednesday.

The move compared with a 2.0 per cent increase in April and was the fourth straight month of rising year-over-year increases. Economists had expected an increase of 2.1 per cent for May, according to Thomson Reuters Eikon.

READ MORE: Canadian inflation rises in April; gas prices strengthen from carbon pricing

Broad-based gains helped boost prices in all eight of major components of the index compared with a year ago.

Food prices rose 3.5 per cent as fresh vegetable prices climbed 16.7 per cent, the largest year-over-year increase since February 2016.

Transportation prices gained 3.1 per cent as the cost of air transportation added 8.9 per cent and the cost of passenger vehicles rose 4.2 per cent. Passenger vehicle insurance premiums rose 8.1 per cent.

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

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.

The rise in prices put inflation ahead of the Bank of Canada’s ideal target for inflation of 2.0 per cent.

The Bank of Canada, which adjusts its key interest rate to keep inflation in check, has kept rates on hold in recent months after the economic weakness at the end of 2018 and the start of this year.

However, the central bank has been predicting the economy will pick up.

The Statistics Canada report said the average of its three gauges for core inflation, which are considered better measures of underlying price pressures because they omit volatile items like gasoline, rose to 2.07 per cent compared with 1.90 per cent in April.

Craig Wong, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A sign indicating a COVID-19 testing site is displayed inside a parking garage in West Nyack, N.Y., Monday, Nov. 30, 2020. The site was only open to students and staff of Rockland County schools in an effort to test enough people to keep the schools open for in-person learning. (AP Photo/Seth Wenig)
4 more deaths, 54 new cases of COVID-19 in Interior Health

This brings the total to 66 deaths in the region

A CP grain car has derailed near Field, causing a power outage. THE CANADIAN PRESS/Darryl Dyck
Train derailment knocks out power in Field

Power is not expected to be restored until tomorrow

(Pixabay)
‘Roadmap out of COVID-19’: Innovate BC’s program helping businesses recover

CEO Raghwa Gopal said the tech sector is here to help brick and mortar businesses

Castlegar Sculpturewalk 2020 – 10 Year Anniversary Sand Sculpture. (Submitted/CBT)
CBT arts and culture grant program now accepting applications

Apply through the Kootenay Columbia Cultural Alliance

Toronto Public Health nurse Lalaine Agarin makes preparations at Toronto’s mass vaccination clinic, Jan. 17, 2021. THE CANADIAN PRESS/Frank Gunn
3 deaths, 234 new cases of COVID-19 in Interior Health over the weekend

One death connected to outbreak at Kamloops’ Royal Inland Hospital, where 20 patients and 28 staff have tested positive

Dr. Penny Ballem, a former deputy health minister, discusses her role in leading B.C.’s COVID-19 vaccination program, at the B.C. legislature, Jan. 22, 2021. (B.C. government)
B.C. holds steady with 407 new COVID-19 cases Tuesday

14 deaths, no new outbreaks in the health care system

Vernon Fire Rescue Services responded to reports of a structure fire on Valleyview Place Jan. 26, 2021. (Brendan Shykora - Vernon Morning Star)
Fire snuffed in Vernon home

No visible smoke, flames from area of reported structure fire

A Cessna 170 airplane similar to the one pictured above is reported to be missing off the waters between Victoria and Washington State. Twitter photo/USCG
Canadian, American rescue crews searching for missing aircraft in waters near Victoria

The search is centered around the waters northeast of Port Angeles

Kevin Lee Barrett pleaded guilty to the aggravated assault of his mother Eleanor Holmes on Tuesday, Jan. 26. (File)
West Kelowna man who beat his mom could be sentenced up to 9 years

Kevin Barrett entered a surprise guilty plea to the lesser charge of aggravated assault on Tuesday morning

Interior Health reported two more COVID-19 deaths at Sunnybank Retirement Center in Oliver Tuesday, Jan. 26, 2021. (File photo)
COVID-19 claims lives of two more South Okanagan care home residents

Five residents of the Oliver care home have died since the outbreak was first declared

Vernon now has an approved 13 cannabis shops in town. (Jennifer Smith - Morning Star)
Vernon, the ‘Pot capital of B.C.’ greenlights two new stores downtown

Two more shops, within 240 metres, approved, despite neighbouring businesses opposition

11 more cases of COVID-19 have been linked to a cluster on Big White Mountain. Pictured above is TELUS park at Big White Ski Resort, Jan. 26. (Big White Ski Resort)
11 more cases of COVID-19 linked to Big White cluster

This brings the total case count to 225, according to health authorities in a Tuesday update

Jonathon Muzychka and Dean Reber are wanted on Canada-wide warrants. (Courtesy of Victoria Police Department)
Convicted killer, robber at large after failing to return to facility: Victoria police

Dean Reber, 60, and Jonathon Muzychka, 43, may be together

Oliver Elementary School
Former Oliver PAC treasurer charged with fraud returns to court

Belinda Yorke will be in court to fix a date for trial in February

Most Read