Ottawa – The annual inflation rate remained stable at 1.7 % in May in the country, reports Statistics Canada. Annual inflation was also established at 1.7 % in May in Quebec, after being 2.2 % in April.
The Federal Agency stresses that the slower increase in housing costs, such as rents and mortgages, is an important factor that helps maintain inflation at a relatively low level.
The increased availability of rental housing, combined with a slowdown in population growth compared to last spring, led to a slowdown in rent growth in May, according to Statistics Canada.
In addition, the withdrawal of carbon pricing for consumers of the federal government continues to temper annual inflation at the pump.
Statistics Canada indicates, however, that the cost of a new vehicle increased in May, with an annual increase of 4.9 %. The higher prices of electric vehicles are mainly responsible for this increase.
Fundamental inflation data has also shown signs of a slight slowdown, which the Banque du Canada will follow closely while it is preparing to make its next decision on interest rates on July 30.
