US EditionCanada's annual inflation unchanged at 1.7% in May, core measures slightly ease
CANADA, JUN 24 – Inflation held at 1.7% as shelter cost growth slowed to 3% and energy prices dropped 15.5%, with Ontario leading rent relief amid slower population growth, Statistics Canada said.
- Statistics Canada reported that the annual inflation rate in Canada remained unchanged at 1.7 per cent in May 2025.
- The stable inflation resulted from slower population growth and increased rental supply that eased rent hikes, plus lower travel tour costs.
- In May, shelter expenses increased by 3%, following a 3.4% rise in April, while food prices went up by 3.3%, which was 0.5 percentage points lower than the previous month’s growth.
- Core inflation metrics eased to three per cent in May, and the cost of new vehicles rose 4.9 per cent annually, partly due to higher prices of electric vehicles.
- These May inflation figures will influence the Bank of Canada’s July 30 interest rate decision, with the central bank focusing on core inflation amid tariffs.
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This is an increase equivalent to that of 1.7% in April, according to Statistics Canada.
Inflation Holds Steady at 1.7% in May as Rent Hikes Cool
The annual pace of inflation held steady at 1.7 percent in May as cooling shelter costs helped tame price pressures, Statistics Canada said Tuesday. Shelter costs rose three percent in May, StatCan said, marking a slowdown from 3.4 percent in April. The agency singled out Ontario as the major source of rent relief in the country. Slowing population growth and a jump in new supply helped dampen rent hikes in May. Mortgage interest costs meanwhile…
Canada Inflation Holds at 1.7% in May as Core Pressures Cool
Canadian consumer prices held steady while underlying core measures eased, likely giving some relief to Bank of Canada policymakers who had raised concerns about hotter underlying inflation prints in recent months.
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