CPI Down 0.4% in May
CBJ — The Consumer Price Index was down 0.4% in May, 2020 compared with the same month a year earlier.
The annual inflation rate of inflation was down due to a decline in gasoline prices with demand at a low, with a majority of businesses being shuttered during the pandemic.
The 0.4% decline in May followed a 0.2% drop in April.
Excluding gasoline, the CPI was up 0.7% compared with a year ago according to the figures released by Statistics Canada, marking the smallest increase in more than seven years.
There were other factors that contributed to the inflationary decline including a 21% drop in traveler accommodations and a 9.5% drop in phone services. Insurance premiums for passenger vehicles were up more than 6% compared with a year ago and meat prices spiked by almost 8%.
The Bank of Canada’s ideal inflation rate typically hovers around 2%.