Inflation ticked up to 2.9% in May, are hopes for a July rate cut still alive?

A surprise uptick in May’s inflation figures is pouring water on hopes for another interest rate cut from the Bank of Canada in July.

Inflation accelerated in May as the costs of services and groceries ticked up, Statistics Canada said Tuesday. The annual rate of inflation was 2.9 per cent in May – up from the 2.7 per cent annual rate in April.

Statistics Canada said inflation on services drove up the headline figure as Canadians paid more on rent, cell services, travel tours and air transportation. Travel to the United States drove the increases in travel costs, the agency noted.

Global’s Anne Gaviola has more on what’s stressing Canadian households and what this means for the country’s central bank and interest rate expectations this summer.

For more info, please go to https://globalnews.ca/news/10586218/canada-inflation-may-2024/

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