Statistics Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.4 percent m-o-m in May, the same pace as in the previous month.

On the y-o-y basis, Canada’s inflation rate increased 2.4 percent last month after a 2.0 percent gain in April. That was the highest inflation rate since October 2018.

Economists had predicted inflation would increase 0.2 percent m-o-m and 2.1 percent y-o-y in May.

According to the report, prices went up in all eight major components in the 12 months to May, with six components growing at faster rates and two components increasing at the same pace compared with April. The prices for food (+3.5 percent y-o-y) and transportation (+3.1 percent y-o-y) contributed the most to the May gain in the headline CPI.

Meanwhile, the closely watched the Bank of Canada's core index increased 2.1 percent y-o-y in May after gaining 1.6 percent y-o-y in the previous month. Economists had forecast an advance of 1.2 percent y-o-y.