Business Economy · Historical report

Canada’s CPI increased 3.2% in May as gasoline prices rose

Statistics Canada reported faster annual consumer-price growth in May, with gasoline, fresh produce and travel-related prices contributing to the change while shelter inflation eased.

By Grant Sullivan · Source dated June 22, 2026 · Published July 22, 2026

Headline inflation accelerated in May

Canada’s Consumer Price Index increased 3.2% year over year in May, up from 2.8% in April, according to Statistics Canada’s June 22 release. The index rose 1.0% month over month. On a seasonally adjusted basis, it increased 0.5%, largely reflecting gains in recreation, education and reading, as well as transportation.

Higher gasoline prices continued to drive the acceleration in headline inflation. Gasoline prices rose 33.2% year over year in May, compared with a 28.6% increase in April. Statistics Canada identified supply uncertainty associated with the Middle East conflict and the closure of the Strait of Hormuz as an upward pressure on gasoline prices.

Inflation also accelerated when gasoline was excluded. The CPI excluding gasoline rose 2.2% year over year in May, compared with 2.0% in April.

Food and travel prices increased

Food purchased from stores rose 4.3% year over year in May. Statistics Canada said this measure had exceeded headline inflation for 16 consecutive months. Fresh fruit prices increased 5.3%, while fresh vegetable prices rose 9.0%.

Fresh vegetables increased 5.5% from April to May, the largest monthly May increase since 2008. The agency attributed that monthly movement to reduced supply and higher fuel costs. Tomato prices rose 45.2% year over year, which Statistics Canada linked to supply contractions in Mexico associated with poor weather and reduced planted acreage following the implementation of US tariffs.

Travel-tour prices rose 0.7% year over year in May after declining 11.0% in April. Air transportation prices increased 7.4% after a 1.7% decline in April, as airlines experienced higher operating costs, including jet fuel.

Shelter inflation slowed and durable-goods growth held steady

Shelter prices rose 1.7% year over year in May, following a 1.8% increase in April. The mortgage interest cost index declined 0.2%, while rent price growth slowed to 3.5%. The homeowners’ replacement cost index declined 2.5% for a 13th consecutive month.

Durable-goods price growth was unchanged at 1.9% year over year in both April and May. Computer equipment, software and supplies rose 3.9% in May after declining 0.2% in April. Household appliance prices declined 5.7%.

Prices rose at a faster annual pace in every province in May than in April, with gasoline identified as the main driver of the acceleration. Statistics Canada also updated CPI basket weights using 2025 expenditure data and said the May headline result would have been unchanged using 2024 basket weights.