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Canada core CPI rises more-than-expected in May

Published 06/29/2011, 07:06 AM
USD/CAD
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Investing.com – Core consumer price inflation in Canada rose more-than-expected in May, official data showed on Wednesday.

In a report, Statistics Canada said that its core consumer price index, which excludes the 8 most volatile items, rose by 0.7% in May, after advancing by 0.2% in April.

Analysts had expected core CPI to rise by 0.2% in May.

Consumer price inflation including more volatile food and energy costs rose 0.7% in May after rising by 0.3% in the previous month, surpassing expectations for a 0.3% increase.

Year-on-year, CPI rose at an annualized rate of 3.7% in May, the largest increase since March 2003, after increasing by 3.3% in April.

Analysts had expected year-on-year CPI to rise at a rate of 3.4%. 

The increase in May was primarily a result of higher gasoline prices.

Following the release of the data, the Canadian dollar was up against its U.S. counterpart, with USD/CAD slumping 0.82% to trade at 0.9730.

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