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The annual inflation rate in Canada was at 1.7% in May of 2025, remaining unchanged from the previous month, and aligned with market expectations. The inflation rate remained below the Bank of Canada's 2% target for the second straight month, holding the decline from the previous month after the removal of the federal consumer carbon tax. Price growth slowed for shelter (3% vs 3.4% in May) amid softer inflation for rent (4.5% vs 5.2%) and mortgage interest costs (6.2% vs 6.8%), consistent with lower rates by the BoC. Prices also slowed for food (3.4% vs 3.8%). In the meantime, the median and trimmed-mean core rates closely followed by the central bank edged down to 3% from 3.1% last month, in line with expectations, to halt their gradual increase from the year. From the previous month, the Canadian CPI rose by 0.6%, rebounding from the 0.1% decrease in April.