Canada's inflation rate has risen above 3% for the first time since 2023. According to the information reported by CityNews Toronto, Statistics Canada said that the consumer price index rose to 3.2% for the month of May, marking a notable step up in the pace of price increases.
The 3.2% figure for May is up from 2.8% in April, and it is the first time the rate has exceeded 3% since 2023. The reading is still lower than the rate seen in the United States, at around 4.2%, and roughly on par with inflation in the European Union, though the trend is described as moving in the wrong direction.
One of the main drivers cited is the war in Iran and its effect on energy prices, chiefly the price of gasoline. According to the figures, the price of gasoline was up 33% in May compared with the previous year, feeding directly into the higher overall rate.
Air travel also contributed to the increase, with rising jet fuel prices pushing fares higher. According to the new numbers, the cost of air travel rose 7.4% in May, adding to the pressure from energy-related costs.
Prices at the grocery store checkout continued to weigh on households, with food prices now up 4.3%. May marked the 16th consecutive month in which food prices outpaced the overall inflation rate, keeping pressure on family budgets.
The report, presented from Ottawa by CityNews, points to gasoline, air travel and groceries as the categories behind the move above 3%. With the May reading at 3.2%, up from 2.8% in April, the latest figures show inflation in Canada climbing back to a level not recorded since 2023.