The data released today, Wednesday, by the Canadian Statistics Office indicated a strong growth in the inflation index for the fifth consecutive month by the end of last May, as the Consumer Price Index rose by 1.4% during May, while the index was expected to grow by only 1.0%. The previous reading of the Canadian inflation index recorded a growth of 0.6% during last April.

At the same time, data from the Canadian Statistics Office showed that the annual general Canadian inflation recorded a growth of 3.9%, while it was expected to record a growth of about 3.4% only. The previous reading showed the index's growth rate at 3.2% during last April, and it was revised upwards to 3.5% during the same period.

The Canadian inflation index measures the average prices of a basket of consumer and service goods such as transportation, food, and medical care, and it is determined by calculating the average price of each item in the previously defined basket. The Consumer Price Index is also considered one of the most important indicators indicating inflation, and therefore affects the currency valuation. Rising prices push central banks to raise interest rates in order to confront inflation.