The consumer price index rose 2.9 per cent in May from a year earlier, compared with a 2.7 per cent year-over-year increase in April. The “core” measures of cost pressures that the Bank of Canada watches for a clearer signal of the trend also ticked higher. (The Logic) 

Talking point: Bank of Canada governor Tiff Macklem has warned repeatedly that the path back to its two per cent inflation target could be bumpy. The good news is price increases stayed within the central bank’s comfort zone for a fifth consecutive month. The bad news is that Statistics Canada’s index of services prices jumped to 4.6 per cent in May from 4.2 per cent, which could indicate that elevated wage growth is stoking price pressures. Macklem will see another month of inflation data before the next rate announcement on July 24, and indicators of economic growth between now and then will weigh heavily on the decision. In isolation, these numbers argue for a pause.