Inflation in Canada unexpectedly sped up in May, clouding July rate cut chances

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Inflation in Canada unexpectedly sped up in May, clouding July rate cut chances
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Canada's annual inflation rate unexpectedly accelerated to 2.9% in May, largely on higher prices for services, while key measures of core inflation edged up ...

OTTAWA - Canada 's annual inflation rate unexpectedly accelerated to 2.9% in May, largely on higher prices for services, while key measures of core inflation edged up for the first time in 5 months, data showed on Tuesday, in an unfavorable reading for July interest rate cut prospects.

The surprise acceleration in headline inflation was driven by price for services including cellular services, travel tours, rent and air transportation, Statistics Canada said.

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