Canada’s inflation rate declined to an annualized rate of 2.7% in April, down from 2.9% in March of this year.
Statistics Canada said the Consumer Price Index’s (CPI) decline in April was due to broad-based decelerations in key categories such as food, services and durable goods.
On a monthly basis, inflation across Canada rose 0.5% in April, mainly driven by higher prices for gasoline.
Excluding gasoline prices, which rose 6.1% year over year in April, inflation slowed to an annualized 2.5% in April from 2.8% in March.
Food purchased from stores saw price gains cool in April, rising by 1.4% year over year compared to a 1.9% increase in March.
In addition to gasoline prices, the cost of rent continued to rise at a fast clip in April, exerting upward pressure on inflation.
Statistics Canada reported that rent prices rose 8.2% year over year in April, down from 8.5% seen in March.
The inflation rate is widely expected to influence the Bank of Canada’s interest rate decisions in coming months, with economists forecasting rate cuts during the summer.
Canada’s central bank targets inflation at an annualized rate of 2%.
