CANADA: Consumer Price Index, May 2018

The Consumer Price Index (CPI) rose 2.2% on a year-over-year basis in May, matching the increase in April.

Component highlights

All eight major components increased on a year-over-year basis in May, although five of the eight major components grew at a slower rate. The transportation index rose 5.6% in May, following a 4.7% increase in April.

Energy prices rose 11.6% year over year in May, following a 6.3% increase in April. This growth was led by the gasoline index, which rose 22.9% in the 12 months to May. The electricity index (-0.8%) posted a smaller decline on a year-over-year basis in May than in the previous month. Prices for fuel oil and other fuels were up 22.2% in the 12-month period ending in May.

The all-items excluding energy index increased 1.6% on a year-over-year basis in May after a 1.9% increase in April. The principal factor offsetting the increase in May was a decline in the telephone services index, which fell 7.1% year over year, following a 0.9% decrease in April. The traveller accommodation index declined 4.2% in the 12 months to May.

Regional highlights

Prices rose more on a year-over-year basis in five provinces in May compared with the previous month. The fresh vegetables index registered larger declines on a month-over-month basis in the Atlantic provinces compared with the other provinces. Prices for telephone services decreased the most month over month in Newfoundland and Labrador, Prince Edward Island and New Brunswick.

Seasonally adjusted monthly Consumer Price Index

On a seasonally adjusted monthly basis, the CPI increased 0.1% in May, matching the increases in April and March. The recreation, education and reading index (+1.7%) registered the largest gain, while the household operations, furnishings and equipment index (-1.0%) declined the most.