The Globe and Mail reports in its Tuesday edition that inflation accelerated to its highest level in more than two years in May as price pressures from the war in Iran started to crop up outside the gas pumps. A Canadian Press dispatch to The Globe says, however, that most economists weighing in Monday saw little cause for panic in Statistics Canada's latest consumer price data with oil prices already receding and the Bank of Canada unlikely to move from the sidelines any time soon. Statistics Canada said Monday that the annual rate of inflation jumped to 3.2 per cent in May, up from 2.8 per cent in April and notching the highest headline inflation rate since December, 2023. Statscan said gas prices rose 33.2 per cent year-over-year last month as conflict in the Middle East continued to shutter the Strait of Hormuz to oil tankers. Oil prices have fallen in recent weeks as peace talks between the United States and Iran progressed. BMO chief economist Doug Porter said in a note to clients Monday that June is tracking for a 10-per-cent decline in gas prices, "which should clip the headline result next month." Higher costs for jet fuel showed up in May. Air transportation costs were up 7.4 per cent annually last month.