Gains led by services as consumers paid more for cellular services, travel and rent
Shelter prices also accelerated on a monthly basis, rising by 0.4 per cent in May from April. On a year-over-year basis, they rose 6.4 per cent. Mortgage interest costs remain the No. 1 contributor to inflation, rising 23.3 per cent year over year, followed by rent at 8.9 per cent.
“Overall, with the data showing much faster price pressures than expected, this casts a lot of doubt on the possibility of a July cut,” said Katherine Judge, an economist with CIBC Capital Markets, in a note after the data.