Overall prices for consumer goods in Canada rose 1.2 percent in May on an annual basis, Statistics Canada reported from Ottawa Friday.
In April, the Consumer Price Index rose 2 percent. StatsCan said May's slower rate was based on two elements of the energy sector that also affected the transportation sector. Natural gas prices were 16.6 percent lower on an annual basis and gasoline prices were 2.3 percent less.
"Prices for clothing and footwear were down 0.3 percent in the 12 months to May, following a 2.4 percent rise in April," the report said. "This decrease was mostly the result of more women's clothing being discounted in May 2012 compared with May 2011."
The two leading factors in May's increase in the cost of living were a 5.4 percent jump in electricity prices and a 2.5 percent increase in prices for food, the agency said.
By province, Alberta recorded the smallest CPI increase at 0.4 percent while Newfoundland/Labrador posted the highest gain at 2.5 percent, the figures showed.