Canada’s inflation picked up pace in May, with the Consumer Price Index (CPI) rising 3.2% from a year earlier, above market expectations and up from the 2.8% increase recorded in April.
On a monthly basis, prices rose 1.0%
Meanwhile, the Bank of Canada’s (BoC) preferred core measure, which excludes more volatile components such as food and energy, rose 2.2% over the past year and increased by 0.6% compared with the previous month. Looking at the BoC’s other key inflation gauges, Common CPI came in at 2.7% (from 2.5%), Trimmed CPI at 2.0% (from 2.0%), and Median CPI at 2.1% (from 2.1%). Together, they show that underlying price pressures are still fairly sticky, while the downward trend appears to have stalled for now.
According to the press release: “Higher prices for gasoline continued to drive the acceleration in the headline CPI in May. However, excluding gasoline, the CPI still rose at a faster pace year over year in May (+2.2%) compared with April (+2.0%).” Market reaction The Canadian Dollar (CAD) is slightly weaker on Monday, pushing USD/CAD closer to new 14-month highs near the 1.4200 level following the release of domestic inflation data. Canadian Dollar Price Today The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today.