Statistics Canada says annual inflation rate drops in May for second month in a row

The agency says the consumer price index fell 0.4 per cent compared with a year ago

Statistics Canada says inflation pulled back even further in May as businesses shut due to the COVID-19 pandemic began to reopen slowly.

The agency says the consumer price index fell 0.4 per cent compared with a year ago, making it the second month in a row for negative inflation after a 0.2 per cent drop for April.

Prices rose in four of the eight major components on a year-over-year basis.

Transportation prices contributed the most to the overall decline, mainly because of lower gas prices compared with May last year.

Statistics Canada says that excluding gasoline, the consumer price index rose 0.7 per cent, the smallest increase since January 2013.

Economists on average expected the consumer price index to remain unchanged compared with a year ago — meaning an annual inflation rate of zero.

The Canadian Press

CanadaCoronaviruseconomy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Handgun pointing complaint draws strong RCMP presence at Chilliwack residence Wednesday night

One in custody after brief standoff involving Emergency Response Team and canine unit

Iconic Chilliwack store passes clothing racks on to downtown neighbours

Chilliwack Mission Thriftstore given racks and fixtures as downtown store closes for good

Exercise and cancer to be explored via webinar

UFV’s Dr. Iris Lesser to lead Zoom event for cancer patients and supporters

Overnight closures for Vedder dike gates this summer rather than full closure

Working with anti-dumping and angling advocates, City of Chilliwack came up with compromise

Fiscal statement from the feds lacked clear plan for economic recovery: MP Strahl

While Conservatives backed emergency supports, it’s now time for ‘transparent plan to guide recovery’

B.C. identifies 20 new COVID-19 cases, travellers specified in count

Pandemic total 3,028 cases, 51 people from outside Canada

Mayors welcome rideshare expansion to eastern Lower Mainland

As of Thursday, Lyft is now offering service throughout Metro Vancouver

Canadian policing organization calls for decriminalization of simple illicit drug possession

Canadian Association of Chiefs of Police want policing focus of opioid crisis to be replaced with a health one

Filing deadline in RCMP sexual-harassment class-action extended due to COVID-19

Plaintiffs now have until January 2021 to submit claims for up to $222,000

Jamie Bacon pleads guilty to charge in Surrey Six case

The plea brings an end to a complex legal case that has spanned more than a decade

Hefty undeclared driver charges piling up, ICBC warns customers

Average extra penalty $2,971 after an at-fault accident

Survey, hotline launched amid probe into racist blood-alcohol guessing game at B.C. hospital

Mary Ellen Turpel-Lafond has been appointed to lead an investigation by Health Minister Adrian Dix

B.C. appeals judge’s decision to leave three clubhouses in Hells Angels hands

The province has filed two notices of appeal related to the B.C. Supreme Court decision

Conservation officers relocate Spirit bear known to roam northwestern B.C.

Bear roamed valley north of Terrace for many years

Most Read