Canada inflation rises to 3.2% in May on higher gas and food prices
Canada inflation rises to 3.2% as gasoline and food costs surge See what drove May's price jump and what it means for households
Canada’s annual inflation rate increased to 3.2% in May, according to Statistics Canada, as higher gasoline prices once again pushed the headline number up. Fresh fruit and vegetable prices also rose sharply, adding pressure to food inflation.
Gasoline prices climbed 33.2% from a year earlier, faster than the 28.6% increase recorded in April. Statistics Canada said the energy spike was linked to an oil shortage tied to the war in Iran. While some economists said fuel prices have eased in recent weeks, the May reading marked the highest annual inflation rate since late 2023.
Even excluding gasoline, consumer prices rose 2.2% in May, up from 2.0% in April. Food costs were a major factor, with fresh fruit up 5.3% and fresh vegetables up 9%. Tomatoes rose 45.2%, while prices for computer equipment also increased as demand for memory chips and storage components stayed strong.