Economists see Canada’s May inflation rising to 3% as gasoline prices climb

Statistics Canada is set to release May CPI data on Monday, and economists widely expect the annual inflation rate to rise to 3% as gasoline prices increased in May. Oil prices have since retreated from recent highs after the U.S. and Iran signed a memorandum of understanding aimed at ending the war and reopening the Strait of Hormuz to tanker traffic. April’s core CPI excluding gasoline rose just 2%, suggesting inflation has not broadly spread. The Bank of Canada has kept its policy rate at 2.25% and says it will not allow higher energy prices to become persistent inflation.