Canada’s annual inflation rate edged up to 2.9 per cent in May from 2.7 per cent the previous month, Statistics Canada said on Tuesday.
The increase was largely due to higher prices for services, some of them typical of the season. Cellular services, rent, travel tours and air transportation saw faster price growth, according to the data agency.
Travel tour prices were up 6.9 per cent and air transportation prices up 4.5 per cent year-over-year, both linked to travel to and from the U.S.
Prices for cell services fell -19.4 per cent in May from a year prior, coming in at a slower pace from April’s -26.6 per cent.
Grocery prices also increased slightly to 1.5 per cent year-over-year after a 1.4 per cent increase in April, marking the first increase since June 2023.
On a monthly basis, grocery prices rose 1.1 per cent. Though typical of the season, it also marked the largest increase since January 2023, StatsCan said.
Higher prices for fresh vegetables, meat (particularly fresh or frozen beef), fresh fruit and non-alcoholic beverages drove May food inflation up on a monthly basis.
