OTTAWA, July 16 (Reuters) - Canada's annual inflation rate cooled to 2.7% in May largely on slower year-over-year growth in gasoline prices, Statistics Canada said on Tuesday.

Analysts had expected annual inflation rate to slow to 2.8% from 2.9% in May.

Percent changes

Month-on-month Year-on-year

Jun May Jun May

CPI - all items -0.1 +0.6 +2.7 +2.9

CPI - common n/a n/a +2.3 +2.4

CPI - median n/a n/a +2.6 +2.7

CPI - trim n/a n/a +2.9 +2.9

Bank of Canada core -0.1 +0.6 +1.9 +1.8

All items ex food/energy +0.0 +0.6 +2.9 +2.9

Goods -0.5 +0.1 +0.3 +1.0

Services +0.2 +1.0 +4.8 +4.6

Energy -2.1 -1.1 +0.5 +4.1

Seasonally adjusted +0.1 +0.2 n/a n/a

Core CPI, SA +0.1 +0.3 n/a n/a

NOTE: Analysts in a Reuters survey had forecast May CPI to be up 2.8% annualized, and to be flat on the month.

(Reporting by Ismail Shakil)

((ismail.shakil@tr.com))

Keywords: CANADA ECONOMY/INFLATION