Toronto: Canadians paid 2.3 percent more for goods and services in May than a year earlier, with a bump in energy prices leading the advance, the government`s statistical agency said on Friday.
The figure was much higher than analysts had expected.
Economist Peter Buchanan of CIBC World Markets noted that core inflation of 1.7 percent -- excluding volatile items such as food, mortgage interest costs, energy prices, bus passes and cigarettes -- is now "a full half point" above the central bank`s forecast for the quarter.
The Bank of Canada considers core inflation when setting its key lending rate, which is currently at a near-record low of one 1.0 percent.
But, Buchanan said, "we still believe any move in rate policy is a year off."
Statistics Canada said higher prices were recorded in May for natural gas, electricity and fuel oil, passenger vehicles, meat, fresh fruit and vegetables, as well as restaurant meals.
Property taxes and mortgage interest costs were also up in the month.
