Canada’s inflation rate increased by 3.6% between May of 2020 and May 2021, the fastest pace increase in a decade.
Rising prices for housing and vehicles led to growth in May, according to Statistics Canada. The agency tracks the nation’s Consumer Price Index, which is a way to measure inflation, and posted the most recent figure in a Wednesday update.
Part of the reason for the quick inflation gain is that prices on key goods decreased during the pandemic in 2020 and are now rebounding from a low comparison point last year.
Comparing CPI growth month-to-month and adjusted for season trends, prices increased 0.4% in May compared to April.
Across Canada, housing prices rose 4.2% on average since May of 2020. That’s the largest yearly increase since September 2008.
Prices for durable goods (appliances, TVs, jewellery, cars, furniture, etc.) rose 4.4% year-over-year in May, the fastest pace since 1989.
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As COVID-19 cases subside and some regions allow travel again, the tourism region is seeing increases in prices. Month-over-month, accommodation prices rose 6.7% in May, the largest recorded increase since the pandemic began.
British Columbia posted the highest tourist accommodation price increases — hotel rooms in that province were 13% more expensive in May compared to April.