Rising fuel costs pushed Canada’s inflation rate higher in May as the annual rate reached 3.2 per cent, according to Statistics Canada.
The agency said gasoline was the main factor behind the increase.
Gas prices rose at a faster pace than in April as supply uncertainty continued in the Middle East, including the closure of the Strait of Hormuz.
StatCan highlighted that Canadians paid the highest gasoline prices since June 2022, when Russia’s invasion of Ukraine created similar concerns about global oil supply.
Inflation also increased even when gasoline was removed from the calculation.
StatCan said the Consumer Price Index excluding gas rose 2.2 per cent in May, up from 2.0 per cent in April.
Grocery prices continued to climb
StatCan reported that fresh fruit rose 5.3 per cent and fresh vegetables increased nine per cent compared with last year.
Tomato prices saw the largest jump after poor weather and reduced planting in Mexico led to a tighter supply.
The agency explained those increases pushed food purchased from stores up 4.3 per cent, marking the 16th straight month grocery inflation has grown faster than the headline rate.
StatCan said prices for travel tours increased after a sharp drop in April, and air transportation rose 7.4 per cent as airlines faced higher jet‑fuel costs.
Shelter inflation continued to ease
The agency stated shelter prices rose 1.7 per cent year over year, down slightly from April.
The homeowners’ replacement cost index and other owned accommodation expenses both declined, and rent growth slowed to 3.5 per cent, the lowest rate since early 2022.
Price growth for durable goods held steady at 1.9 per cent.
StatCan said computer equipment and related supplies rose 3.9 per cent because of higher costs for components such as RAM and solid‑state drives.
The agency links the increase to strong demand from artificial‑intelligence data centres and limited production capacity.
StatCan said inflation accelerated in every province, with gasoline having a larger impact in Atlantic Canada because households spend more on fuel.
