However,
Inflation remained stable 1.7 % new:
Annual inflation was also established at 1.7 % in May in Quebec, after being 2.2 % in April.
Housing costs increased from 3.0 % from one year to the other in May, according to Statistics Canada, which marks a slowdown compared to 3.4 % in April.
The increased availability of rental housing. Nevertheless, combined with a slowdown in population growth compared to last spring, led to a slowdown in rent growth in May, according to Statistics Canada. Nevertheless, Growth has slowed the most in Ontario.
Mortgage interest costs have slowed down for a 21st consecutive month. Moreover, thanks to the drop in interest rates announced by the Banque de Canada.
Economists mainly expected that inflation remains unchanged in May. Nevertheless, Inflation also established 1.7 % in April.
The withdrawal of carbon pricing for consumers of the federal government continued to temper annual inflation remained stable 1.7 % new inflation concerning the price of petrol. but a lower monthly drop in prices at the pump compared to the same period last year limited this decline.
Food prices at grocery store increased by 3.3 % on an annual basis in May, half a percentage of less percentage than the increase observed in April.
The drop in prices for organized trips and air transport also slowed down inflation last month.
Statistics Canada said, however, that new vehicles prices increased in May, by 4.9 % from one year to another, especially due to higher prices for electric vehicles.
Inflation excluding taxes – excluding the effects of the suppression of carbon pricing – also remained stable at 2.3 % last month.
The Governor of the Bank of Canada. Tiff Macklem, said last week that the central bank would pay particular attention to this figure, trying to see beyond temporary effects to understand the inflation remained stable 1.7 % new real evolution of inflation in the context of customs duties.
The underlying inflation indicators, closely monitored by the Banque du Canada, fell from a tenth percentage point to be 3.0 % in May.
The BMO chief economist. Doug Porter, said on Tuesday in a note to his customers that the underlying inflation was playing in the right direction, but probably not alone to convince the Bank of Canada to lower its rates again after two consecutive maintenance.
The central bank will examine the inflation figures for June before its next announcement on interest rates scheduled for July 30.
“The data of the next five weeks will ultimately determine the decision. but the probability of a drop in July is now lower given the weakness of the IPC,” he said.
A distinct press release from Statistics Canada published on Tuesday provided an estimate of manufacturing sales in May. The first inflation remained stable 1.7 % new signs suggest a monthly decrease of 1.3 %, after a decrease of 2.8 % in April, the tariff dispute between Canada and the United States having weighed on activity.
The main economist of the TD bank. Andrew Hencic, explained that the trade war should maintain the economy at a low level in the coming months, thus attenuating inflationary pressures.
“As was the case this year. the prospects greatly depend on the development of commercial negotiations, but we believe that the difficult economic context should give the Bank of Canada the possibility of carrying out two other decreases this year,” he said.
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Inflation remained stable 1.7 % new
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