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.
The data also shows gasoline prices rose 16.9% on a month-over-month basis in May after falling significantly in April (-15.2%) and March (-17.8%).
Despite the monthly increase in May, prices for gasoline were down 29.8% year-over-year. @NEWS1130 https://t.co/m8xQZPapk2
— Amanda Wawryk (@AmandaWawryk) June 17, 2020
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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