The Bank of Canada's core CPI-median rate edged lower to 1.5% from 1.6% while the CPI-trim rate declined to 1.2% from 1.3% with the CPI-common unchanged at 1.3%.
The level reached in the reference rate is congruent with the process of efficient convergence of inflation toward the 3 percent objective, the central bank said in a statement.
Total food prices fell 0.1% from a year ago, the eighth consecutive monthly decline.
Consumer prices in B.C. rose at an annual rate of 1.9%.
The annual inflation rate cooled to 1.3 percent in May, below forecasts for 1.5 percent, pushing it further away from the Bank of Canada's 2 percent target as the cost of food fell and gasoline prices moderated, data from Statistics Canada showed.
Nationally, Canadian inflation eased up on the accelerator last month as weaker year-over-year growth in gasoline prices helped slow the annual rate to 1.3 per cent, Statistics Canada said.
Number of global displaced up to 65.6 million a year ago
The internal strife in South Sudan has become the source of the fastest-growing displacement crisis in the world. Then there are asylum-seekers who have fled their country but haven't been granted refugee status.
Last week, governor Stephen Poloz signalled he's inching closer to a hike as the economy builds momentum in several key areas.
The agency says year-over-year gasoline prices rose 6.8 per cent in May after climbing 15.9 per cent in April.
Strong employment data and robust advances in wholesale and retail sales have also fueled rate-increase expectations, with markets pricing in a almost 50% probability of a rate rise at the Bank of Canada's next policy meeting on July 12.
"The market thinks that the inflation peak is near and that Banxico will end its cycle this Thursday", Finamex analyst Guillermo Aboumrad said in a note to clients.
Ontario had promised to cut electricity bills by an average of 17 per cent and the reductions were scheduled to start taking effect in May.
The cost of living was also lower in BC in May - dipping to 1.9 per cent from 2.1 per cent the month earlier, but this province still has one of the highest inflation rates in the country, trailing only Newfoundland, New Brunswick and Whitehorse, Yukon.