Inflation spiked to 3.2% in May amid higher gas prices, says StatCan

Higher oil and gasoline prices pushed overall inflation in May to 3.2 per cent compared to a year ago, according to Statistics Canada.

The agency released the latest Consumer Price Index Monday, which showed a 0.4 per cent increase in year-over-year inflation compared to April.

Gas prices alone increased 33.2 per cent last month compared to the same period a year earlier as the Middle East conflict, and, more specifically, the closure of the Strait of Hormuz led to global supply constraints for crude oil and other resources.

Food prices also increased 4.4 per cent in May compared to the same month a year earlier, which was the 16th straight month that year-over-year food inflation outpaced the headline figure, said Statistics Canada.

Statistics Canada says in May, consumers saw the highest prices for gasoline at the pumps since June 2022 — amid Russia’s invasion of Ukraine.

Travel inflation as a category saw a 0.7 per cent increase last month compared to a year earlier, with a air transportation prices rising 7.4 per cent as airlines passed along higher operational costs — mainly for jet fuel.

Prices in the produce aisle also boosted overall inflation last month.

Fresh vegetable prices overall increased nine per cent compared to a year earlier.

Tomato prices increased a whopping 45.2 per cent due to ongoing supply issues in Mexico stemming from poor weather and a drop in planted acreage related to U.S. tariffs, the agency said.

Fresh fruit prices increased 5.3 per cent, with price growth in the category mainly coming from more expensive grapes and berries.

The Bank of Canada, which has a two per cent target for inflation, has said there has been limited evidence of a broad-based pass-through of higher energy prices to the cost of other things so far.

– with a file from The Canadian Press