The Consumer Price Index (CPI) rose 1.7% on a year-over-year basis in May, matching the 1.7% increase in April.
Compared with one year earlier, a smaller price increase for rent and a decline in travel tours put downward pressure on the CPI in May. Smaller declines for gas and cellular services put upward pressure on the index compared with the previous month.
Excluding energy, the CPI rose 2.7% in May, following a 2.9% increase in April.
On a monthly basis, the CPI rose 0.6% in May. On a seasonally adjusted monthly basis, the CPI was up 0.2%.
Prices for four major components grow at a slower pace in May compared with April
Shelter prices grow at a slower pace
The shelter component grew at a slower pace year over year in May, rising 3.0% following a 3.4% increase in April.
Prices for rent rose 4.5% on a year-over-year basis in May, compared with a 5.2% increase in April. Rent price growth slowed the most in Ontario, with prices rising 3.0% in May following a 5.4% increase in April. The increased availability of rental units, coupled with slower population growth compared with spring of the previous year, contributed to the slowdown in rent price growth in May. Given the large weight of Ontario nationally, these effects alone were enough to offset faster price growth in seven other provinces.
The mortgage interest cost index decelerated for the 21st consecutive month in May (+6.2%) after rising 6.8% in April.
Prices for travel tours and air transportation fall in May
Year over year, prices for travel tours fell 0.2% in May after rising 6.7% the previous month. Prices for air transportation decreased 10.1% on an annual basis in May, following a 5.8% decline in April.
Prices for rent and mortgage interest cost continue to grow at a slower pace
Gasoline prices continue to decline year over year
Gasoline led the decline in consumer energy prices again this month, down 15.5% year over year in May after declining 18.1% in April. Gasoline prices in May remained below May 2024 levels, primarily due to the removal of the consumer carbon levy.
In May 2025, prices for gasoline increased 1.9% month over month. The increase was largely attributed to higher refining margins, which were partially due to higher costs associated with switching to summer blends.
Gasoline prices increase month over month in May
Slower decline year-over-year for cellular services
On an annual basis, prices for cellular services fell 5.5% in May, compared with a 10.8% decline in April.
On a month-over-month basis, prices for cellular services rose 7.2% in May. The higher prices followed the end of promotions from some wireless service providers.
Prices for new cars grow at a faster pace year over year
Prices for new passenger vehicles rose 4.9% year over year in May, after increasing 4.6% in April. This faster price growth was primarily driven by higher prices for some electric vehicles.
The Consumer Price Index rises at a faster pace in six provinces
Regional highlights
On a yearly basis, price growth was faster in six provinces, slower in three provinces and was unchanged in one province in May compared with April.
In Alberta, prices for homeowners’ home and mortgage insurance rose 11.9% in May, following a 7.7% increase the previous month, contributing to the faster growth in the province.
