Canada's CPI Jumps on Gasoline Prices in April, But Is Lower Than Expected
The Canadian consumer price index increased 2.8% year over year in April on rising energy prices, up from an increase of 2.4% in March, said the country's statistical agency on Tuesday.But April's CPI was lower than a 3.1% year over year consensus figure provided by MUFG.Higher energy prices, most notably gasoline prices, drove the acceleration in the headline CPI, said Statistics Canada in a statement. The removal of the consumer carbon levy in April 2025, which resulted in monthly declines for gasoline and natural gas, has now fallen out of the 12-month movement, putting upward pressure on the all-items CPI. Excluding gasoline, the CPI rose at a slower pace year over year in April (+2.0%) compared with March (+2.2%), added StatsCan.Moderating faster price growth in the all-items CPI was a year-over-year decline in prices for travel tours and a slowdown in rent prices, the agency said.The CPI was up 0.4% month over month in April, pointed out the Ottawa-based agency. On a seasonally adjusted monthly basis, the CPI increased 0.3%.The monthly and quarterly CPI reports, reported by StatsCan, measure the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing. The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the Bank of Canada as a sign of underlying inflation pressures.