Canadian Inflation Rate Steady at 1.7% in May

Jun 25, 2025

The Canadian inflation rate remained unchanged in May, clouding the interest rate outlook.

Statistics Canada’s consumer price index (CPI) on Tuesday pegged headline inflation at 1.7% in May, steady from the April reading and mostly in line with analyst and economist expectations.

Smaller price increases for rent and a decline in the cost of travel tours put downward pressure on prices in May, while more modest price drops for gasoline and cell phone service slowed the overall decline, StatsCan said.

Excluding energy, the CPI rose 2.7% in May, following a 2.9% increase in April. On a monthly basis, the CPI rose 0.6% in May. On a seasonally adjusted monthly basis, the CPI was up 0.2%.

Core measures of inflation did ease slightly in May, but it remains to be seen whether that will be enough for the Bank of Canada to consider an interest rate cut.

The Bank earlier this month opted to hold its key overnight rate at 2.75% for the second straight time, following seven consecutive cuts totaling 225 basis points between mid-2024 and early 2025. Bank of Canada officials cited persistent core inflation and rising cost pressures — partly driven by trade-related tariffs — as reasons to maintain a cautious approach.

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Video: Independent Seed, National Impact | On The Brink: Episode 9

A survey of 200 independent seed businesses reveals what Canada's seed sector actually contributes — and what it stands to lose.

On the Brink, Justin Funk, a third-generation agri-marketer, shares the findings of a national survey conducted in early 2026. The numbers reframe the conversation: independent seed companies in Canada represent upwards of $1.7 billion in dedicated seed infrastructure, approximately 3,000 full-time equivalent jobs in rural communities, and an estimated $20 million in annual community contributions. And roughly 90% of Canada's cereals, pulses, and other small pollinated crops flow through them.

The survey also asked how dependent these businesses are on public plant breeding to survive. The answer was unambiguous. For policymakers evaluating the future of publicly funded breeding programs, Funk argues the economic case for this sector and the case for public plant breeding are the same argument.

On the Brink is a cross-country video series exploring the future of plant breeding in Canada. Each episode features voices from across the industry in an open, ongoing conversation about innovation and long-term investment in Canadian agriculture.