(Photo courtesy of Andrzej Rostek / Royalty-free / iStock / Getty Images Plus)(Photo courtesy of Andrzej Rostek / Royalty-free / iStock / Getty Images Plus)
Sarnia

Inflation holds at 1.7 per cent in May

Inflation in May was the same as it was in April, 1.7 per cent, according to Statistics Canada's Consumer Price Index.

Smaller increases in rent and a drop in travel tours put downward pressure on the consumer price index in May.

Shelter costs in Canada rose three per cent last month compared to April's 3.4 per cent increase. Ontario saw the biggest drop of all the provinces at three per cent. Statistics Canada said more apartments were available for rent and population growth slowed in May contributing to the deceleration.

Mortgage interest costs decelerated for the 21st consecutive month, only increasing 6.2 per cent last month after April's 6.8 per cent increase.

The cost of travel also decelerated. Travel tours came down in cost by 0.2 per cent after rising 6.7 per cent the month before. Flying to a destination also dropped 10.1 per cent after an 18.1 per cent drop in April.

Energy costs fell 15.5 per cent year over year. Those expenses dropped 18.1 per cent in April. The federal agency attributed the drop to the removal of the consumer carbon levy. Month over month, the price of gasoline increased by 1.9 per cent in May because of higher refining margins.

Without energy, Statistics Canada said inflation was 2.7 per cent.

Cell phone service became more affordable with a 5.5 per cent drop in costs last month. Those costs fell 10.8 per cent in April.

Buying a new vehicle costs more due to the higher prices of some electric vehicles. The price of a new car rose 4.9 per cent in May.

The Consumer Price Index report for June is expected on July 15.

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