Canada's inflation rate rose to 3.2% in May

05-Jul-2026

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Canada's annual inflation rate edged up to 3.2 per cent in May, according to Statistics Canada, with rising gas prices pushing inflation up as the cost of fresh fruits and vegetables also soared.

The high cost of gas, driven by an oil shortage due to the war in Iran, was the driving force behind the uptick for another month, according to Statistics Canada. The price of gasoline rose at a faster pace in May, with prices increasing 33.2 per cent on a year-over-year basis, compared to 28.6 per cent in April.

Those costs pushed the annual inflation rate to its highest level since late 2023.