Market News: Week Ending May 22, 2026

Market News: Week Ending May 22, 2026

Statistics Canada reported that the consumer price index rose 0.3% (seasonally adjusted) in April. On a year-over-year basis, the CPI was up 2.8%, a considerable increase from the 2.4% pace posted in March. This move in the pace of inflation was due largely to the surge in energy prices as a result of the conflict in the Middle East. Five of the eight main CPI subgroups moved higher during the month. Transportation reported the largest monthly advance (2.6%). Recreation, education and reading (-0.7%) reported the largest of the three declines in April. The three Bank of Canada core inflation measures edged lower during the month. They ranged from 2.0% to 2.5% on a year-over-year basis. CPI common, which the central bank says is most closely correlated with the output gap fell from 2.6% to 2.5% in this report. The greater inflationary pressures from energy were anticipated and are unlikely to influence the Bank of Canada at its pending policy meeting, scheduled for June 10. 

Statistics Canada announced that building permits reversed course, rising 10.3% in April. The monthly move follows a revised 7.8% drop in March (originally reported as -8.4%). The April advance was led by a massive 38.4% improvement in non-residential permits while the residential sector actually posted a 3.3% decline. Total overall permits are now up 8.5% on a year-over-year basis. Non-residential permits are up 30.8% but residential permits are 2.9% lower, on this basis. Given the wide swings seen recently, these results are generally in line with market expectations. Permits are an indicator of the future level of activity in the construction sector. Canada’s ongoing housing shortage has placed considerable focus on residential permitting. 

Statistics Canada announced that its New Housing Price Index (NHPI) fell 0.4% in April, following a revised 0.2% drop in March. Regardless, on a year-over-year basis, the index is now down 2.3%, the same reading as March and weakest figure reported since the global financial crisis (-2.7% y/y in September 2009). Price weakness continues to contrast sharply with the apparent demand for housing. These results are weaker than consensus expectations. 

Note:
All index performance is in Canadian dollars.

IMPORTANT DISCLAIMERS
The information in this letter is derived from various sources, including CI Global Asset Management, CRA, Bloomberg, National Post, Globe and Mail, Wall Street Journal, Bloomberg, Reuters, Investment Executive, Advisor.ca, MarketWatch, Toronto Sun, The Guardian, MSN.ca and Statistics Canada at various dates. This material is provided for general information and is subject to change without notice. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. Certain statements contained in this communication are based in whole or in part on information provided by third parties and CI Global Asset Management has taken reasonable steps to ensure their accuracy. Market conditions may change which may impact the information contained in this document.