Even stripping out gasoline, however, underlying inflation is not standing still. The CPI excluding gasoline rose 2.2% year over year in May, up from 2.0% in April — a signal that price pressures are beginning to broaden modestly beyond the energy component.
On a monthly basis, the CPI rose 1.0% in May. Seasonally adjusted, the monthly gain was 0.5%, driven primarily by increases in the recreation, education and reading, and transportation components, Statistics Canada reported.
Grocery inflation accelerates again
Food purchased from stores rose 4.3% year over year in May 2026, the 16th consecutive month it has outpaced headline inflation, according to Statistics Canada. Fresh vegetables surged 9.0% annually, the largest monthly May increase since 2008, driven by higher prices for broccoli, cauliflower, tomatoes, and lettuce. Tomato prices alone climbed 45.2% year over year in May, a result of supply contractions in Mexico stemming from poor weather and a reduction in planted acreage following the implementation of United States tariffs.
Prices for fresh fruit rose 5.3% annually in May, reversing a 0.5% decline in April, with berries and grapes leading the acceleration.
For wealth managers working with retirees and clients on fixed incomes, persistent grocery inflation compounds the pressure on real spending power continue to evolve in different directions across provinces.
