Canada May CPI rose 3.2% from a year earlier in May, topping the 3.0% market forecast.
Gasoline led the increase in inflation. Prices for gasoline climbed 33.2% from a year earlier in May, faster than the 28.6% rise in April. However, the source said that move has now reversed, which points to a cooler June reading.
Prices also rose when gasoline was stripped out. Inflation excluding gasoline came in at 2.2% year over year in May, up from 2.0% in April.
Canada May CPI Gets Lift From Energy
Higher oil prices also fed into other parts of the basket. Air transport prices rose 7.4% from a year earlier in May after a 1.7% drop in the prior month. Meanwhile, air transport prices increased 6.7% on the month.
Housing remained the main drag on the Canadian CPI reading. Homeowners’ replacement cost fell 2.5% from a year earlier and slipped 0.3% from the prior month.
April Reading Set the Base
For comparison, Canada May CPI followed a 2.8% annual rise in April, which was up from 2.4% in March. On a seasonally adjusted monthly basis, the CPI increased 0.3% in April. The unadjusted monthly gain was 0.4%.
Statistics Canada released the April figures on May 19, 2026. That reading marked the highest level in two years, although it came in below market consensus near 3.1%.
In April, energy was the biggest contributor to inflation. Energy prices rose 19.2% from a year earlier, while fuel oil and other fuels jumped 41.3%. Food inflation eased to 3.5% in April from 4.0% in March, and rent rose 3.6% after 4.2% in March.
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