Canada’s annual inflation rate steady at 1.7% as rise in shelter costs slows
According to the latest data of the statistics published on Tuesday, Canada’s annual inflation rate remained at a rate of 1.7 percent in May. The Federal Agency says that a smaller price increase for rent and the decline in travel tours are downward pressure on prices, and smaller price decreases for gasoline and mobile phone service are blunting the overall decrease.
Monthly, the Consumer Price Index (CPI) increased by 0.6 percent last month. Seasonally adjusted CPI increased by 0.2 percent monthly.
Statcan said that shelter costs increased by three percent annually in May after an increase of 3.4 percent in April. The rent increased by 4.5 percent annually last month and earned a 5.2 percent gain in April. The slowdown in increasing rents was the most important in Ontario, where prices increased by three percent in May after a 5.4 percent leap in April.
Statcan said in a statement on Tuesday, “The increasing availability of rental units, combined with a slower population growth than the spring of the previous year, contributed to the slowdown in the growth growth in May in May.” “Considering the large weight of Ontario, these effects alone were enough to balance the price increase faster in other seven provinces.”
Mortgage interest cost index for landlords fell for 21 consecutive months in May and fell from 6.8 percent to 6.2 percent in April.
In the meantime, the price intervals in the accelerator pumps caused consumer energy prices to fall for a month and fell by 15.5 percent annually in May and decreased by 18.1 percent in April. Statcan said that in May, gasoline prices were largely due to the abolition of the federal government’s consumer carbon tax and corresponding state taxes.
Analysts expected the annual inflation rate to remain constant. CIBC Economics, published by CIBC Economics last week, called for a reading of 1.7 percent annually for May for May.
Last month, CPI returned from 2.3 percent to 1.7 percent in March. Statcan said that this is largely due to low energy costs because the federal government has lifted the carbon tax on the consumer and the comparison oil prices decreased.
Jeff Lagerquist is a senior reporter in Yahoo Finance Canada. Follow him on x @jefflagerquist.
