OTTAWA: Consumer prices in Canada rose 0.7 percent in the 12 months to May, as higher food and shelter costs were partly offset by lower transportation costs, the government statistical agency said on Friday.

The inflation figure was slightly less than the 0.9 percent forecast by analysts after April's 0.4 percent rise in prices.

Natural gas prices increased for a third time in four months, following 25 consecutive declines, Statistics Canada said in a statement.

Rent and property taxes also rose but mortgage interest costs fell, the agency said.

Consumers paid more for fresh vegetables and fruits, bakery products and meats, and beer and cigarettes, but less for gasoline and passenger vehicles.