{"id":48558,"date":"2024-06-25T12:49:31","date_gmt":"2024-06-25T12:49:31","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/06\/25\/canadas-inflation-rate-accelerates-to-2-9\/"},"modified":"2024-06-25T12:49:31","modified_gmt":"2024-06-25T12:49:31","slug":"canadas-inflation-rate-accelerates-to-2-9","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/06\/25\/canadas-inflation-rate-accelerates-to-2-9\/","title":{"rendered":"Canada’s inflation rate accelerates to 2.9%"},"content":{"rendered":"
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Inflation accelerated in May by 2.9 per cent on a year-over-year basis, according to Statistics Canada, which will surprise economists who were expecting it to ease from the 2.7 per cent increase in April.<\/p>\n

Services costs were the biggest contributor to the uptick in the consumer price index (CPI), with prices rising 4.6 per cent last month, following a 4.2 per cent increase in the month of April, driven mainly by faster price growth in cellphone services, travel tours, rent and air transportation.<\/p>\n<\/div>\n

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Grocery prices slightly rose by 1.5 per cent year over year, up from the 1.4 per cent increase in April, and showed their first acceleration since June 2023. Grocery prices also rose on a month-over-month basis by 1.1 per cent, primarily due to price increases for fresh vegetables, meat, fresh fruit and non-alcoholic beverages.<\/p>\n

Shelter prices also accelerated on a monthly basis, rising by 0.4 per cent in May from April. On a year-over-year basis, they rose 6.4 per cent. Mortgage interest costs remain the No. 1 contributor to inflation, rising 23.3 per cent year over year, followed by rent at 8.9 per cent.<\/p>\n

\u201cCanadian central bankers said they wanted to see more of the same, but that\u2019s not what they got in today\u2019s inflation numbers,\u201d Jimmy Jean, chief economist at Desjardins Group, said. \u201cIn contrast to expectations for a muted 0.3 per cent increase, headline prices rose 0.6 per cent in May.\u201d<\/p>\n

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