The Consumer Price Index (CPI) rose 2.9% on a year-over-year basis in May, up from a 2.7% gain in April. Acceleration in the headline CPI was largely due to higher prices for services, which rose 4.6% in May following a 4.2% increase in April. Faster price growth for services was led by cellular services, travel tours, rent and air transportation. Prices for goods (+1.0%) grew at the same rate as in April. On a monthly basis, the CPI rose 0.6% in May, largely stemming from an increase in travel tours. On a seasonally adjusted monthly basis, the CPI rose 0.3% in May. Prices for cellular services fell at a slower ... (full story)

Canada's annual inflation rate rose to 2.9 per cent in May, largely driven by higher prices for services, Statistics Canada reported on Friday. The agency reported prices for services rose 4.6 per cent from a year ago as consumers paid more for cellular services, travel and rent. Prices for goods rose one per cent. Grocery prices rose 1.5 per cent year-over-year in May, a tick higher compared with April, when they rose 1.4 per cent. The annual inflation rate for April was 2.7 per cent. The latest consumer price report comes after the Bank of Canada cut its benchmark interest rate by a quarter of a percentage point ... (full story)