People of Canada may be feeling a prince pinch as inflation increased to 2.4% in May, led by higher food prices.
That compares to a rise of two per cent in April, released Statistics Canada’s consumer price index (CPI) on Wednesday.
All eight categories of the consumer price index are seeing an increase in prices year after year, with notable rise in food prices.
After 3% increase in April, food price rose by 4% in 12 months leading up to May 2019.
Compared to prices a year ago, the price of fresh vegetables saw a spike by 16.7%, and 2.9% increase in the price of meat.
4.2% spike was seen in the cost of new vehicles, while durable goods got 2.5% more expensive in the last year.
However, there is one exception – the price of gasoline dropped by 3.7% as compared to May last year.
One of the rare commodities, the price of energy fell last year, by 0.1% in that time.
Inflation would have been 2.7% if energy is stripped out.
“The acceleration in the core readings support the notion that the Bank of Canada is likely to remain on the sidelines,” Toronto-Dominion Bank economist James Marple said.
“Inflation is back in Canada, at least for now,” added Marple.
After the inflation rate was released, the Canadian dollar surged by about half a cent.