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Energy prices expected to push inflation higher for May, economists say
Economists expect gas prices to lift headline inflation to 3% in May, while the Bank of Canada watches for broader spillover.
- Statistics Canada is expected to report on Monday that annual inflation rose to 3% in May, driven by higher gasoline prices following a 2.8% rate in April.
- The Bank, which maintains a 2% inflation target, held its policy interest rate at 2.25% earlier this month and vowed not to allow higher energy prices to become persistent inflation.
- RBC economist Abbey will scrutinize the report for signs energy costs are spilling into other categories, stating, "Our expectation is still that the uptick in headline inflation is still driven by limited categories."
- Oil prices have recently fallen after a memorandum with Iran to end fighting and reopen the Strait of Hormuz, a shift Andrew Hencic noted may ease future inflation pressures.
- Economists are monitoring data for signs of economic rebound in the second quarter after weak first-quarter contraction, while The Bank will release its next interest rate decision and forecasts on July 15.
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15 Articles
The Toronto Star+10 Reposted by 10 other sources
Energy prices expected to push inflation higher for May, economists say
OTTAWA - High oil and gasoline prices are expected to push inflation higher when Statistics Canada reports its consumer price index for May on Monday.
·Toronto, Canada
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Higher oil and gasoline prices are expected to increase inflation when Statistics Canada publishes its consumer price index for May on Monday.
·Montreal, Canada
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Acadie NouvelleReposted by 
Le Charlevoisien
Le CharlevoisienHigher oil and gasoline prices are expected to increase inflation when Statistics Canada publishes its consumer price index for May on Monday.
Coverage Details
Total News Sources15
Leaning Left6Leaning Right0Center3Last UpdatedBias Distribution67% Left
Bias Distribution
- 67% of the sources lean Left
67% Left
L 67%
C 33%
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