Inflation pulled back even further in May as businesses that were shut due to the COVID-19 pandemic began to reopen slowly.
Statistics Canada’s consumer price index fell 0.4 per cent last month when compared with a year ago. This marks the second month in a row for negative inflation after seeing a 0.2 per cent drop for April.
The median of core inflation readings rose 1.9 per cent and, seasonally adjusted, the CPI rose 0.1 per cent from April.
Prices rose in four of the eight major components on a year-over-year basis.
Transportation prices contributed the most to the overall decline, mainly because of lower gas prices compared with May last year.
Statistics Canada says that excluding gasoline, the consumer price index rose 0.7 per cent, the smallest increase since January 2013.
Economists on average expected the consumer price index to remain unchanged compared with a year ago – meaning an annual inflation rate of zero.
With files to Canadian Press.
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