Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsEconomyCanadian inflation rate spikes to 3.2% on surging gas pricesMay reading hits highest level since December 2023 You can save this article by registering for free here. Or sign-in if you have an account.A motorcycle is parked at a Circle K gas station on June 16, 2026 in Austin, Texas. Photo by Brandon Bell/Getty ImagesCanada’s inflation rate accelerated to 3.2 per cent in May, mainly driven by rising gasoline prices as the closure of the Strait of Hormuz continued to cause supply uncertainty for the third straight month.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorMay’s reading was up from 2.8 per cent in April, which was also driven by higher gasoline prices.The last time headline inflation was this high was December 2023, when the Consumer Price Index increased by 3.4 per cent.According to Statistics Canada data, gasoline prices were up by 33.2 per cent year-over-year in May following a 28.6 per cent rise in April. These are the biggest increases since July 2022, officials said.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againFood inflation also accelerated in May, rising to 4.3 per cent year-over-year compared with 3.8 per cent in April, driven mainly by higher prices for fresh fruits and vegetables. May marked the 16th consecutive month grocery prices have outpaced headline inflation on a year-over-year basis.Shelter prices rose by 1.7 per cent in May after increasing by 1.8 per cent in April, while rental prices increased by 3.5 per cent year-over-year in May after a 3.6 per cent increase in April.Airfare and travel tour prices also rose by 7.4 per cent and 0.7 per cent, respectively, as airlines faced higher operational costs, notably jet fuel. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.