- KPB & Co Research
Statistics Canada released data that show that average prices across Canada rose by approximately 2.4% in May - 2019 relative to May-2018. Relative to the previous month average prices rose 0.4%. The growth in prices in May - 2019 relative to May-2018 came on the heels of a 3.5% increase in the average price of food, a 2.7% increase in the average price of shelter, a 3.1% increase in the average cost of transportation. The average cost of sin goods - "Alcoholic beverages, tobacco products and recreational cannabis" rose by 2.1%.
Canada Inflation Rate As At May 2019
The pace of inflation/price increase has been accelerating since Jan 2019, when the inflation rate fell to 1.4%. On the other hand, the core inflation rate - the inflation rate with the 8 most volatile items removed as defined by the Bank of Canada - has remained stable at 1.8% since then possibly indicating that the recent rise in the headline inflation rate reflect primarily items that are highly volatile, as opposed to an overheating economy. According to Statistics Canada the 8 most volatile items are: fruit, fruit preparations and nuts; vegetables and vegetable preparations; mortgage interest cost; natural gas; fuel oil and other fuels; gasoline; inter-city transportation; and tobacco products and smokers' supplies.