Statistics Canada Reports 1.7% Annual CPI Increase for May 2025

The Consumer Price Index (CPI) for Canada increased by 1.7% in May 2025 compared to May 2024, according to Statistics Canada. This matches the 1.7% annual increase reported in April. On a monthly basis, the CPI rose 0.6% in May, while the seasonally adjusted monthly change was 0.2%.

Statistics Canada reported that slower growth in rent prices and a decrease in prices for travel tours reduced the overall CPI increase in May. Meanwhile, smaller year-over-year declines for gasoline and cellular services offset some of this downward pressure. Excluding energy prices, the CPI rose 2.7% in May, slightly lower than the 2.9% increase in April.

Shelter costs rose 3.0% year-over-year in May, after a 3.4% increase in April. Rent prices increased 4.5% compared to May 2024, a slower pace than the 5.2% rise the previous month. Ontario's rent prices grew 3.0% in May following a 5.4% increase in April, which Statistics Canada attributed to greater rental unit availability and slower population growth. The agency also noted the mortgage interest cost index increased 6.2% year-over-year in May, following a 6.8% rise in April. This marks the 21st consecutive month that growth in mortgage interest costs has slowed.

Food purchased from stores increased 3.3% year-over-year in May. Transportation costs overall decreased, with the transportation index falling 1.3% from the previous year.

Gasoline prices declined 15.5% year-over-year in May, following an 18.1% drop in April. Statistics Canada stated that the removal of the consumer carbon levy was the main factor behind lower gasoline prices compared to May 2024. Month-over-month, gasoline prices rose 1.9% in May, which Statistics Canada attributed to higher refining margins and the increased costs from switching to summer fuel blends.

Prices for travel tours fell 0.2% year-over-year in May after a 6.7% increase in April. Air transportation prices declined 10.1% in May, following a 5.8% decline the previous month.

On an annual basis, prices for cellular services fell 5.5% in May, compared to a 10.8% drop in April. On a monthly basis, cellular service prices rose 7.2% in May. Statistics Canada reported this increase followed the end of promotions from some wireless service providers.

New passenger vehicles saw prices rise 4.9% year-over-year in May, up from a 4.6% rise in April. Statistics Canada attributed this increase largely to higher prices for some electric vehicles.

Regionally, Statistics Canada reported that annual price growth was faster in six provinces, slower in three provinces, and unchanged in one province in May compared to April. In Alberta, prices for homeowners’ home and mortgage insurance increased 11.9% in May, following a 7.7% increase in April.

Statistics Canada updated the basket of goods and services used to calculate the CPI as of May 2025. The new basket weights are based on consumer spending data from 2024.