By Ketki Saxena
Investing.com -- According to data from Statistics Canada, the inflation rate dropped to 3.4% year-over-year as of May, compared to April's figure of 4.4%. One key factor that contributed significantly to this deceleration was a sharp decrease in gasoline prices.
The influence of gasoline prices on the overall inflation rate becomes apparent when these costs are excluded from calculations.
Without considering gasoline, the inflation rate for May would have remained at an elevated level similar to April's - around 4.4%.
Month over month, CPI Saw increase of 0.4%, or a seasonally adjusted growth of 0.1%.
Economists surveyed by Bloomberg had anticipated that annual inflation rates would fall back down to approximately 3.4% come May.