Canada's inflation rate dropped to 3.4% in May

Canada’s annual inflation rate dropped to 3.4 per cent in May, down a full percentage point from April.

Statistics Canada says it’s due to a drop in gasoline prices, as the cost of housing and food remains sky-high.

While Canadians are getting some relief at the pumps, rising mortgage payments tied to higher interest rates continue to be the largest contributor to overall rising household costs.

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The mortgage cost index rose to a whopping 29.9 per cent, a new record high increase for the third consecutive month.

With energy prices down 12.4 per cent year-over-year in May, mostly due to global factors. Statistics Canada says inflation hit 3.4 per cent in May, less than half of the 8 per cent peak last July, and the first time it’s been lower than 4 per cent since the summer of 2021.

Statistics Canada says grocery prices are up nine per cent annually, showing little improvement from April.