Canada Inflation Rate Up to 2-Year High


Canadian annual consumer prices rose 2 percent in April of 2014 from 1.5 percent in March, driven by an 8.4 percent surge in energy prices. The inflation rate stands now at the central bank's 2 percent target.

Gasoline prices rose 6.6 percent in the 12 months to April, following a 1.4 percent increase in March. Faster rates of change in gasoline prices were observed in nine provinces, with Prince Edward Island being the exception. Prices for natural gas increased 26.0 percent, after posting a 17.9 percent gain in March. The rise in the natural gas index in April was mainly attributable to a price increase in Ontario. Electricity prices increased 4.6 percent in the 12 months to April, while fuel oil prices rose 9.3 percent.

Shelter costs advanced 3.3 percent on a year-over-year basis in April, after rising 2.7 percent the previous month. In addition to higher prices for natural gas and electricity, consumers paid more in property taxes in the 12 months to April. The mortgage interest cost index increased 0.2 percent in the 12 months to April, after posting a 0.6 percent decline in March. April marked the first year-over-year gain in the mortgage interest cost index since June 2009.

Transportation costs increased 2.8 percent in the 12 months to April, following a 1.7 percent rise in March. In addition to higher gasoline prices, consumers paid 1.5 percent more for the purchase of passenger vehicles and 2.4 percent more for passenger vehicle insurance premiums.

Food prices rose 1.9 percent in the 12 months to April, after advancing 1.5 percent in March. 

Excluding energy, the CPI advanced 1.4 percent year over year in April, after increasing 1.3 percent the previous month.

On a monthly basis, the inflation rate slowed to 0.3 percent in April from 0.6 percent in March. 

Canada Inflation Rate Up to 2-Year High


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
5/23/2014 1:41:40 PM