Canada Inflation Rate At 18-Month Low in April

Consumer prices in Canada increased by 0.8 percent year-on-year in April of 2015, down from 1.2 percent reported in the previous month, mainly due to lower energy prices. The increase in April was the smallest since October 2013.
Statistics Canada | Joana Ferreira | 5/22/2015 1:46:13 PM
Compared to April 2014, the energy index decreased 13.5 percent, following a 10.4 percent decline in March.

The natural gas index was down 14.6 percent, following a 0.4 percent increase the previous month. This deceleration was primarily attributable to a price decline in Ontario.

Gasoline prices were down 21.0 percent, after registering a 19.2 percent decline in March. In addition, fuel oil prices decreased 20.0 percent, following a 15.2 percent drop in March.

Prices rose in seven of the eight major components. The rise in the CPI was led by higher prices for food. The shelter index, which includes natural gas and fuel oil, also increased in the 12 months to April, although at a slower pace than in March. The transportation index was the only major component to post a decline.

Consumers paid 3.6 percent more for food products. Prices for food purchased from stores were up 4.0 percent, led by an 11.2 percent increase in meat prices. A 4.3 percent rise in prices for fresh vegetables also contributed to the increase in food prices. Prices for food purchased from restaurants rose 2.7 percent.

The shelter index posted a 0.5 percent, following a 1.4 percent rise the previous month. It was the lowest since March 2010. The smaller increase in April compared with the previous month was mainly attributable to the decline in the natural gas index. In addition, the mortgage interest cost index was down 0.9 percent, following a 0.7 percent decrease in March.

The transportation index declined 4.2 percent, following a 3.9 percent decrease in March. For the sixth consecutive month, the year-over-year decrease in the transportation index was mainly attributable to lower gasoline prices. Prices for the purchase of passenger vehicles increased 1.4 percent, following a 1.8 percent rise the previous month.

Prices for clothing and footwear increased 1.3 percent, after recording a 2.6 percent gain the previous month.

On a seasonally adjusted monthly basis, the CPI decreased 0.1 percent in April, following a 0.3 percent rise in March. The largest decline was recorded by the recreation, education and reading index, which fell 0.6 percent. The seasonally adjusted index for clothing and footwear (-0.3 percent) also declined.

Canada Inflation Rate At 18-Month Low in April