Correction to Canada Annual CPI Article

By Paul Vieira Features Dow Jones Newswires

Inflation in Canada decelerated in May on lower clothing and food costs, potentially cooling chatter in financial markets about an immediate Bank of Canada rate increase.

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The all-items consumer-price index in May rose 1.3% from a year earlier, Statistics Canada said Friday, following a 1.6% advance in the previous month. May's increase was also below market expectations for a 1.5% gain, according to economists at Royal Bank of Canada.

On a month-over-month basis, CPI in May edged upward 0.1%.

Meanwhile, the average rate of core inflation, based on three gauges used by the Bank of Canada, slowed for a third straight month, to hit 1.3% in May. The three measures of core inflation -- which aim to get a better read on underlying price pressures in the economy -- ranged from 1.2% to 1.5%.

The Bank of Canada sets rate policy to achieve and maintain 2% inflation.

Write to Paul Vieira at paul.vieira@wsj.com

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Corrections & Amplifications

This was corrected at 9:39 a.m. ET because the original incorrectly stated that Canada's CPI increase took place in April in the third paragraph.

On a month-over-month basis, Canada's consumer-price index in May edged upward 0.1%. "Canada Annual CPI Slows in May to 1.3%," at 8:45 a.m. ET, incorrectly stated that the increase took place in April in the third paragraph. (June 23, 2017)

(END) Dow Jones Newswires

June 23, 2017 09:53 ET (13:53 GMT)