Consumer prices in Canada rose 0.9 percent in May, with low oil prices continuing to slow down inflation, the government statistical agency said Friday.
Energy prices were down nearly 12 percent in the month, led by cheaper gasoline, according to Statistics Canada.
Canadians paid more however for restaurant meals, meat, fresh fruit and vegetables, bakery products, passenger vehicles, hotel accommodations and women`s clothing.
Analysts had expected the May inflation rate to remain at 0.8 percent, the same rate posted in April.
The core inflation rate used by the Bank of Canada in setting key lending rates, meanwhile, fell a notch to 2.2 percent, but remained above the bank`s 2.0 percent target.
Its next rate announcement is scheduled for July 15.