This is what economists are expecting from Tuesday's inflation report

Economists anticipate inflation cooling in May following an unexpected increase the previous month.

Statistics Canada will release Canada’s consumer price index (CPI) for the month of May Tuesday. Economists tracked by Bloomberg expect to see inflation falling to 3.4 per cent year over year in May.

In April, the CPI rose 4.4 per cent from the previous year, which marked the first increase in the rate of headline inflation since June 2022. 

“May’s CPI report, out Tuesday, should look encouraging on the surface, with a big deceleration in headline annual inflation, due in no small part to base effects (prices were up big in May 2022),” Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO Capital Markets, wrote in a note last week.