Consumers faced higher inflation across the country in May as the war in Iran and subsequent oil price spike drove prices for gasoline and related travel expenses up, while food prices also increased.

While underlying inflation remained well contained, there were some signs that inflation increases broadened outside energy. B.C. inflation rose to 2.9 per cent year-over-year in May, up from 2.5 per cent in April, marking the third straight month above two per cent but below the national inflation (3.2 per cent). Inflation accelerated across all provinces.

In B.C., inflation—excluding energy—rose to 2.1 per cent from 1.6 per cent, while inflation excluding both food and energy increased to 1.7 per cent from 1.3 per cent. This suggests broader upward pressures beyond energy, although growth is not yet a problem. At the same time, inflation exceeded average hourly wages growth of 1.5 per cent year-over-year, implying continued pressure on real household purchasing power.

Among the details, energy prices rose 20.5 per cent year-over-year in May........

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