Canada’s annual consumer inflation slowed to 3.4% in May, easing from the 4.4% annual gain recorded during the previous month, according to the country’s statistical authority.
While the figure was in line with expectations, it marked the smallest annual increase since June 2021, Statistics Canada said Tuesday in a report.
The figure is a significant slowdown since the 8.1% gain last June, which was the highest in 39 years.
The slowdown was largely driven by lower gasoline prices that saw a decline of 18.3% year-on-year, according to Statistics Canada.
Excluding gasoline, consumer prices annually rose 4.4% in May, following a 4.9% increase in April, it added.
The consumer price index rose 0.4% in May, lower than expectations of 0.5%, following a 0.7% increase in April.
The Bank of Canada hiked interest rates by 25 basis points on June 7 as the central bank continues its policy of quantitative tightening.
The central bank said April’s annual inflation gain of 4.4% was the first increase in 10 months, while it expects consumer inflation to ease to around 3% this summer.
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