Canadian inflation accelerated in May, with consumer prices rising 3.2 percent from a year earlier, up from 2.8 percent in April, as higher gasoline, food and travel costs pushed the annual rate higher.
Gasoline remained the largest contributor to inflation. Prices at the pump increased 33.2 percent compared with May 2025, following a 28.6 percent annual increase in April.
Consumers faced higher prices beyond gasoline. Excluding gasoline, the consumer price index increased 2.2 percent year over year in May, compared with a 2.0 percent increase in April.
Travel-related expenses also rose. Air transportation prices increased 7.4 percent from a year earlier after declining 1.7 percent in April. Travel tour prices rose 0.7 percent following an 11.0 percent annual decline a month earlier. Higher jet fuel costs contributed to the increase in airline operating expenses.
Food prices continued to outpace overall inflation. Grocery prices rose 4.3 percent from a year earlier in May. It was the 16th consecutive month that food purchased from stores increased faster than the overall inflation rate.
Fresh produce accounted for much of the increase. Fresh fruit prices rose 5.3 percent year over year after declining 0.5 percent in April. Higher prices for berries and grapes were among the main contributors.
Fresh vegetable prices increased 9.0 percent from a year earlier, more than double April’s 4.1 percent gain. Broccoli, cauliflower, tomatoes and lettuce recorded notable increases. Tomato prices surged 45.2 percent compared with May 2025.
On a monthly basis, fresh vegetable prices rose 5.5 percent in May, the largest increase for the month since 2008. Reduced supply and higher fuel costs were cited as factors behind the increase.
Shelter costs continued to moderate. The shelter component rose 1.7 percent from a year earlier, compared with 1.8 percent in April.
The homeowners’ replacement cost index declined 2.5 percent, marking its 13th consecutive annual decrease. Other owned accommodation expenses, including real estate commissions, fell 2.1 percent. Mortgage interest costs also continued to ease, posting a 0.2 percent annual decline.
Rent inflation slowed to 3.5 percent in May from 3.6 percent in April, reaching its lowest annual rate since January 2022.
Prices for durable goods were unchanged from April’s annual pace, rising 1.9 percent year over year. Computer equipment, software and supplies rose 3.9 percent after declining 0.2 percent in April. Higher prices for memory chips and solid-state drives contributed to the increase as demand from artificial intelligence data centres remained strong.
Meanwhile, price growth slowed for passenger vehicles and household equipment, while household appliance prices fell 5.7 per cent from a year earlier.
Consumer prices increased 1.0 percent from April to every month. After seasonal adjustment, prices rose 0.5 percent, led by gains in transportation and recreation-related categories.
Every province recorded faster inflation in May than in April. Gasoline was the main factor behind the acceleration across the country, with Atlantic provinces experiencing a larger impact because fuel accounts for a greater share of household spending.