Inflation unexpectedly surged in Canada, a setback for policymakers as they weigh further interest rate cuts next month. The consumer price index rose 2.9% in May from a year ago, up from 2.7% a month earlier, primarily due to higher prices for services, Statistics Canada reported Tuesday in Ottawa. That was faster than the median estimate of 2.6% in a Bloomberg survey of economists. On a monthly basis, the index climbed 0.6%, versus expectations for a 0.3% gain and up from 0.5% in April. On a seasonally adjusted basis, inflation rose 0.3%. The Bank of Canada’s two core inflation measures also accelerated, averaging ... (full story)