Meanwhile, food price growth saw little change from April, coming in at 9.1% and decelerating by 0.1% on a monthly basis.
The new data showed inflation closer to the Bank of Canada’s 2% target, with annual price increases largely in line with the central bank’s expectations of a 3% level over the summer.
Nevertheless, RBC economist Claire Fan indicated in the Bank’s response to the CPI report that underlying inflation trends in Canada are running “well above” the Bank of Canada’s target rate, meaning another rate hike in July is yet to come. is also possible.
The central bank has launched a series of rate hikes since March last year in an effort to tackle the inflation crisis, with annual price increases hitting a 39-year high of 8.1% last June.