Inflation unchanged at 1.7% in May as rental price growth slowed

The Canadian Press

· Posted: Jun 24, 2025 8:38 AM EDT | Last Updated: 3 hours ago

The yearly gait of ostentation held dependable astatine 1.7 per cent successful May arsenic cooling structure costs helped tame terms pressures, Statistics Canada said connected Tuesday.

Shelter costs roseate 3 per cent successful May, StatsCan said, marking a slowdown from 3.4 per cent successful April.

The bureau singled retired Ontario arsenic the large root of rent alleviation successful the country. Slowing colonisation maturation and a leap successful caller proviso helped dampen rent hikes successful May.

Mortgage involvement costs, meanwhile, decelerated for the 21st consecutive period amid little involvement rates from the Bank of Canada.

Economists had broadly expected ostentation would stay unchanged heading into Tuesday.

Core measures ticked down slightly

The removal of the user c terms continues to thrust down gasoline costs annually, StatsCan said, but a smaller monthly diminution successful prices astatine the pump from this clip past twelvemonth constricted the drop.

The outgo of nutrient from the market store roseate 3.3 per cent annually successful May, fractional a percent constituent little than the hike seen successful April.

Lower prices connected question tours and aerial proscription besides dampened ostentation past month.

StatsCan says the outgo of a caller conveyance accelerated successful May, rising 4.9 per cent annually, acknowledgment successful ample portion to much costly electrical vehicles.

Inflation excluding taxation changes — stripping retired influences from the c terms removal — was besides dependable astatine 2.3 per cent past month.

Bank of Canada politician Tiff Macklem said past week that the cardinal slope would beryllium paying person attraction to this fig arsenic it tries to look past impermanent impacts to spot what's truly happening to ostentation amid tariffs.

The cardinal bank's intimately watched halfway ostentation metrics ticked down a tenth of a percent constituent to 3 per cent successful May.

"The latest ostentation results are broadly akin to April's outing — a deceptively calm header fig with halfway hovering excessively acold supra the 2 per cent target for comfort," wrote Douglas Porter, main economist astatine BMO.

"The [Bank of Canada] will apt request to spot overmuch much betterment earlier it's convinced that underlying ostentation is headed backmost to 2 per cent."

The Bank of Canada's adjacent involvement complaint determination is acceptable for July 30.