Consumer Price Index Up 1.7% in May 2025, Statistics Canada Reports

The Consumer Price Index (CPI) in Canada rose 1.7% over the 12 months ending in May 2025, according to Statistics Canada. This annual rate was unchanged compared to April. On a monthly basis, the CPI increased 0.6% in May, or 0.2% when adjusted for seasonal factors.

Consumer price trends affect costs for Canadian households. Changes in the prices of shelter, food, transportation, and other goods directly influence what residents pay for everyday items and services.

Statistics Canada reported that food purchased from stores cost 3.3% more in May than at the same time last year. Sheltering costs increased 3.0% over the year, compared to a 3.4% rise in April. Prices for rent rose 4.5% year over year across Canada, while rent in Ontario increased by 3.0% in May, slowing from a 5.4% increase in April. According to Statistics Canada, the slower rent growth in Ontario is due to greater rental unit availability and slower population growth relative to the previous spring. The mortgage interest cost index rose 6.2% in May, which was lower than the 6.8% increase observed in April. This marks the 21st consecutive month of slower growth for mortgage interest costs.

Transportation costs fell by 1.3% year over year. Gasoline prices decreased 15.5% compared to May 2024, a change Statistics Canada primarily attributed to the removal of the consumer carbon levy. Between April and May, gasoline prices rose by 1.9%, which Statistics Canada linked to higher refining margins and costs from shifting to summer fuel blends.

Year over year, the price of travel tours dropped by 0.2% in May following a 6.7% increase in April. Air transportation costs fell by 10.1% annually, following a 5.8% decline in the previous month.

Prices for cellular services fell 5.5% year over year, which is a slower decline than the 10.8% decrease in April. On a month-over-month basis, cellular service prices rose 7.2% in May after promotions from some wireless service providers ended. Prices for new passenger vehicles increased 4.9% year over year, with Statistics Canada attributing the increase mainly to higher prices for certain electric vehicles.

Price growth in May was higher in six provinces, lower in three, and unchanged in one, according to Statistics Canada. In Alberta, homeowners' home and mortgage insurance costs increased by 11.9% in May, up from a 7.7% rise in April.

The basket of goods and services used to calculate the CPI was updated in May using 2024 expenditure data. Statistics Canada stated that this update allows the index to remain current with consumer spending data. The agency also began publishing CPI measures that exclude food, energy, and the effect of indirect taxes, a task previously handled by the Bank of Canada. The next CPI release, covering June 2025, is scheduled for July 15, 2025.