Canada's inflation rate accelerated to 3.2 per cent in May, the highest level since December 2023, driven primarily by surging gasoline prices. The increase from 2.8 per cent in April marks the third consecutive month of rising inflation, according to Statistics Canada data released on June 22, 2026.
Gasoline prices lead the surge
Gasoline prices jumped 33.2 per cent year-over-year in May, following a 28.6 per cent rise in April. These are the largest increases since July 2022, officials said. The closure of the Strait of Hormuz continued to cause supply uncertainty for the third straight month, pushing energy costs higher.
Food and shelter costs also rise
Food inflation accelerated to 4.3 per cent year-over-year in May, up from 3.8 per cent in April, driven mainly by higher prices for fresh fruits and vegetables. May marked the 16th consecutive month that grocery prices outpaced headline inflation on a year-over-year basis. Shelter prices rose by 1.7 per cent in May after a 1.8 per cent increase in April, while rental prices increased by 3.5 per cent year-over-year, slightly down from 3.6 per cent in April.
Transportation and travel costs climb
Airfare increased by 7.4 per cent year-over-year in May, and travel tour prices rose by 0.7 per cent, as airlines faced higher operational costs, notably for jet fuel. The overall Consumer Price Index (CPI) reading of 3.2 per cent is the highest since December 2023, when it stood at 3.4 per cent.
