Canada’s Inflation Rises to 3.2% as Fuel and Food Costs Climb

Canada’s inflation rate moved higher in May, with the Consumer Price Index rising 3.2 per cent year over year. That was up from 2.8 per cent in April.

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Gasoline remained the biggest reason for the jump. Prices at the pump rose 33.2 per cent compared with May 2025, faster than the 28.6 per cent increase recorded in April. Supply uncertainty linked to the Middle East conflict, including the closure of the Strait of Hormuz, continued to put pressure on fuel prices. Consumers paid the highest gasoline prices since June 2022.

Even without gasoline, inflation still picked up. The CPI excluding gasoline rose 2.2 per cent year over year, compared with 2.0 per cent in April. Month over month, overall prices increased 1.0 per cent. On a seasonally adjusted basis, they were up 0.5 per cent.

Travel costs also rose. Travel tours increased 0.7 per cent year over year in May after falling 11.0 per cent in April. Air transportation climbed 7.4 per cent, following a 1.7 per cent decline a month earlier, as airlines faced higher operating costs, including jet fuel.

At grocery stores, fresh produce became noticeably more expensive. Fresh fruit prices rose 5.3 per cent, led by berries and grapes. Fresh vegetables increased 9.0 per cent, with broccoli, cauliflower, tomatoes and lettuce pushing prices higher. Tomato prices alone jumped 45.2 per cent, tied to reduced supply from Mexico after poor weather and lower planted acreage following U.S. tariffs.

Shelter inflation continued to cool. Shelter prices rose 1.7 per cent in May, while rent inflation slowed to 3.5 per cent, the lowest rate since January 2022.

Inflation rose faster in every province in May compared with April, with gasoline prices driving much of the increase. The impact was especially strong in Atlantic Canada, where gasoline makes up a larger share of household spending.

Nova Scotia recorded the highest inflation rate at 5.2 per cent, up from 4.3 per cent in April. New Brunswick followed at 4.7 per cent, while Manitoba reached 4.6 per cent. Newfoundland and Labrador and Saskatchewan both rose to 4.4 per cent.

Alberta also saw faster price growth, with inflation climbing to 3.7 per cent from 3.2 per cent a month earlier. British Columbia’s inflation rate increased to 2.9 per cent in May, up from 2.5 per cent in April. Ontario had the lowest provincial rate at 2.6 per cent, though it too increased from April’s 2.4 per cent.