Canada's annual inflation rate unexpectedly rose to 2.9% in May from 2.7% in April, according to Statistics Canada. This increase defied economists' expectations of a drop to 2.6%. The surge in inflation was primarily driven by rising prices for services. Rent prices in Ontario saw a significant year-over-year increase of 8.4% in May, up from 6.1% in April. Additionally, Canadian rent prices surged 8.9% in May, marking the highest increase since January 1983. The unexpected inflation rise comes less than three weeks after the Bank of Canada led its Group of Seven peers into rate cuts, casting doubt on the central bank's July rate decision. Core CPI rose to 1.8% year-over-year, up from 1.6%, while the median CPI increased to 2.8% year-over-year, against an estimate of 2.6%. The trimmed CPI also rose to 2.9% year-over-year, slightly above the 2.8% estimate. Economists noted that the rate cut weeks ago might have been a policy mistake.
Bank of Canada’s July rate decision in doubt after inflation heats up https://t.co/9GKmOS5gJf
NEW: Canada inflation edges up to 2.9 percent https://t.co/0C1Nui2DNo
Canada inflation surprisingly rises in May, markets trim July rate cut bets https://t.co/31ukVG4zLa https://t.co/knUMLhovvy
🚨🚨BREAKING NEWS CANADIAN RENT PRICES SURGE 8.9% IN MAY (ORANGE LINE) THE HIGHEST SINCE JANUARY 1983. https://t.co/KeTiP6Ze5M
🚨🚨BREAKING NEWS CANADIAN RENT PRICES SURGE 8.9% IN MAY THE HIGHEST SINCE JANUARY 1983. https://t.co/bgf4g7v22t
CANADA MAY CPI 2.9% YoY EXPECTED 2.6% Perhaps the weeks ago rate cut was a policy mistake
🚨CANADA INFLATION UNEXPECTEDLY RE-ACCELERATES. May CPI +2.9% vs 2.6% expected. They cut rates too soon. U.S should NOT make this mistake. https://t.co/MBhxbEIJSV
Inflation ticked up to 2.9% in May https://t.co/Jynjr73TFN
Inflation and underlying price pressures unexpectedly surged in Canada less than three weeks after the central bank led its Group of Seven peers into rate cuts https://t.co/2Wo1J1PQv4 via @economics @rtkwrites @jzm_econ @ErikHertzberg @decloet @ldhillonkane
Canada May CPI Unexpectedly Quickens to 2.9% On Services https://t.co/MlAHEyjQo3
Inflation and underlying price pressures unexpectedly surged in Canada less than three weeks after the central bank led its Group of Seven peers into rate cuts https://t.co/ejQ1rW1Ggc
Annual inflation accelerated in May, Statistics Canada says. Here's where Canadians were paying more. READ MORE: https://t.co/oyBMDVXdu7 https://t.co/oyBMDVXdu7
CPI comes in hot at 2.9% year over year. (Consensus estimate: 2.6%.) Among other things, "On a year-over-year basis, rent prices rose 8.4% in Ontario in May, up from a 6.1% increase in April."
BREAKING: Canada inflation unexpectedly rises to 2.9% in May, vs 2.7% in April. Economists were actually expected a drop. Prices for services appear to be the culprit for the hotter reading. This will undermine the case for another rate cut next month. https://t.co/58xeVDtZgI
CANADA MAY CONSUMER PRICES RISE 2.9% Y/Y; EST. +2.6% CANADA MAY CORE CPI RISES 1.8% Y/Y; PREV. 1.6% CANADA MAY MEDIAN CPI RISES 2.8% Y/Y; EST. +2.6% CANADA MAY TRIMMED CPI RISES 2.9% Y/Y; EST. +2.8%
Live updates: Statistics Canada to release its May inflation report today https://t.co/iGS1m4erEs