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.
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.
Continue Reading Below
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 email@example.com
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)