If last night’s Oilers loss wasn’t upsetting enough for Canadians, the country’s inflation rate also is moving in the wrong direction. This morning, Statistics Canada said the inflation rate hit 2.9% in May, a jump from the 2.7% rate seen back in April and well above analyst estimates of a decrease to 2.6%. The spike was fuelled by the increasing cost of rent and prices for air transportation, which were up 8.9% and 4.5% on the year, respectively. While grocery prices are stabilizing compared to the year before, prices did rise by 1.1% from last month, which is the biggest jump seen since January 2023. Prices for fresh veggies, fruit, meat, and non-alcoholic drinks saw the largest hikes — making it a sad day for those planning a sober charcuterie night. Despite the Bank of Canada cutting the interest rate to 4.75% earlier this month, today’s surprise numbers have lowered the odds of another cut in July from 60% to 45%, according to analysts. But don't count out a July cut just yet, BMO economist Robert Kavcic told Bloomberg this morning. “One bad report is not necessarily enough to change the playbook completely,” he said. But if June’s inflation numbers are high too, it could be more than just a blip.