Alberta inflation climbs to 3.7% as gas prices surge

Statistics Canada says Canada's inflation rate increased to 3.2 per cent in May. Alberta's inflation rate increased to 3.7 per cent in the same month. (File)

Inflation in Alberta accelerated in May, outpacing the national average as rising gasoline costs continued to strain household budgets.

Statistics Canada reported Tuesday that the Consumer Price Index rose 3.7 per cent year over year in Alberta in May.

Nationally, inflation increased 3.2 per cent, up from 2.8 per cent in April.

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Energy prices were the primary driver of the increase.

Gasoline prices across Canada rose 33.2 per cent year over year, driven by supply concerns related to Middle East conflicts and shipping disruptions in the Strait of Hormuz.

Although gasoline was the main factor, Statistics Canada noted that price pressures affected other sectors as well.

Excluding gasoline, the national inflation rate rose 2.2 per cent in May, up from 2.0 per cent in April.

Canadians also faced higher costs for groceries, air travel, and vacation packages.

Food purchased from stores increased 4.3 per cent year over year, marking the 16th consecutive month grocery inflation outpaced the overall inflation rate.

Fresh fruit prices increased 5.3 per cent year over year, while fresh vegetables rose nine per cent. Statistics Canada attributed these increases to reduced supply and higher fuel costs.

Housing-related costs provided some relief. National shelter inflation slowed to 1.7 per cent in May from 1.8 per cent in April. Rent inflation eased, and mortgage interest costs continued to decline.

The latest figures come as the Bank of Canada weighs its next interest rate decision on July 15.