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Consumer prices shrink for a second month

Last Updated Jun 17, 2020 at 7:59 am MDT

Statistics Canada's offices at Tunny's Pasture in Ottawa are shown on Friday, March 8, 2019. THE CANADIAN PRESS/Justin Tang
Summary

Consumer price index fell 0.4 per cent in May from a year earlier

StatCan says, seasonally adjusted, the CPI was up 0.1 per cent in May from April

Transportation prices contributed the most to the overall decline in inflation, StatCan says

OTTAWA (NEWS 1130) – Inflation pulled back even further in May as businesses shut due to the COVID-19 pandemic began to reopen slowly.

Statistics Canada’s consumer price index fell 0.4 per cent last month from a year earlier after dipping 0.2 per cent in April. The median of core inflation readings, excluding volatile items, rose 1.9 per cent. Seasonally adjusted, the CPI was up 0.1 per cent from April.

Transportation prices contributed the most to the overall decline, mainly because of lower gas prices compared with May last year.

Statistics Canada says that excluding gasoline, the consumer price index rose 0.7 per cent, the smallest increase since January 2013.

Economists on average expected the consumer price index to remain unchanged compared with a year ago, meaning an annual inflation rate of zero.

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