
Steady May inflation figures don’t make the case for rate cuts: economists
OTTAWA — May inflation figures showed marginal improvements in some of the Bank of Canada’s closely watched price figures — a step in the right direction, some economists say, but likely not enough to convince the central bank to cut interest rates.
The annual pace of inflation held steady at 1.7 per cent last month as cooling shelter costs helped tame price pressures, Statistics Canada said Tuesday.
Shelter costs rose three per cent in May, StatCan said, marking a slowdown from 3.4 per cent in April.
The agency singled out Ontario as the major source of rent relief in the country. Slowing population growth and a jump in new supply helped keep a lid on rent hikes in May.