Statistics Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.5 percent m-o-m in May, the same pace as in the previous four months.

On the y-o-y basis, Canada’s inflation rate surged 3.6 percent last month after jumping 3.4 percent in April. This was the largest yearly gain since May 2011.

Economists had predicted inflation would increase 0.4 percent m-o-m and 3.5 percent y-o-y in May.

According to the report, prices rose in every major component on a year-over-year basis, led by shelter (+4.2 percent) and transportation (+7.6 percent).

Meanwhile, the closely watched the Bank of Canada's core index jumped 2.8 percent y-o-y in May, following a 2.3 percent y-o-y increase in April. This was the highest rate since March 2003. Economists had forecast a gain of 2.4 percent y-o-y.