Canada Inflation Rate Picks Up to 1.7% in April

Canada's annual inflation rate rose to 1.7% in April 2016, recovering from a 5-month low of 1.3% in March, in line with market expectations. Higher prices for food and shelter contributed the most to the increase while prices for energy fell at a slower pace.
Statistics Canada | Joana Ferreira | 5/20/2016 2:05:32 PM
Year-over-year, food prices rose 3.2 percent compared with a 3.6 percent gain in March. Prices for food purchased from stores were up 3.3 percent, following a 4 percent increase the previous month and prices for food purchased from restaurants rose 2.7 percent, following a 2.6 percent increase in March.

The shelter index was up 1.4 percent, following a 1.1 percent gain in March, mainly attributable to smaller year-over-year declines in the prices of natural gas (-12.8 percent from -17.4 percent in the previous month) and fuel oil (-19.3 percent from -25.8 percent). Electricity prices were up 6.5 percent, following a 7.5 percent increase the previous month.

The transportation index increased 0.9 percent, after declining 1 percent in March, as gasoline prices fell at a slower pace (-5.8 percent from -13.6 percent in March). On a year-over-year basis, the purchase of passenger vehicles index increased 4.6 percent, after posting a 3.2 percent gain in the previous month.

Overall energy prices declined 3.2 percent, following a 7.8 percent decrease in March. 

The annual core inflation rate was recorded at 2.2 percent, up from 2.1 percent in March and higher than market expectations of 2 percent. 

On a monthly basis, consumer prices rose 0.3 percent, easing from a 0.6 percent rise in the previous month, as a 0.5 percent drop in prices for food weighed on growth. Meanwhile, the gasoline index climbed 8.9 percent in April, its largest monthly rise since February 2015.

Canada Inflation Rate Picks Up to 1.7% in April