Canada’s annual inflation rate eased to 1.7% in April as energy prices dropped sharply following the removal of a federal consumer carbon tax, while core inflation measures edged higher, Statistics Canada reported Tuesday.
Overall energy prices fell 12.7% last month, with gasoline prices down 18.1% and natural gas prices dropping 14.1% from a year earlier. Grocery prices rose 3.8%, up from 3.2% in March, and travel tour prices increased 6.7% year over year.
On a monthly basis, inflation dipped 0.1%. The Canadian dollar strengthened slightly to C$1.3940 per U.S. dollar after the data release.
The figures come ahead of the Bank of Canada’s next interest rate decision on June 4, following its decision to hold rates steady on April 16 after seven consecutive cuts.
Core inflation measures, which exclude volatile items and the carbon tax removal, rose to their highest levels since March 2024, with the CPI median climbing to 3.2% and CPI trim rising to 3.1%.
