Canada Inflation Rate Slows to 2.2%

The annual inflation rate in Canada eased to 2.2 percent in April of 2018 from 2.3 percent in March, which was the highest reading since October of 2014. Figures came below market expectations of 2.3 percent amid a slowdown in gasoline cost and a fall in travel services.

Year-on-year prices rose less for transportation (4.7 percent compared to 5.3 percent in March), mainly due to gasoline (14.2 percent compared to 17.1 percent). Also, cost fell for recreation, education and reading (-0.2 percent compared to 1.3 percent), mainly due to a 6 percent slump in prices of travel services. A smaller annual increase in the cost of air transportation (11.9 percent) coincided with the price decrease in travel services.

On the other hand, inflation was steady for shelter (1.7 percent); went up for food (1.8 percent compared to 1.7 percent); and household operations, furnishings and equipment (1.4 percent compared to 1.2 percent); and prices recovered for clothing and footwear (2.2 percent compared to -0.1 percent), namely clothing (2.5 percent). 

On a monthly basis, consumer prices were up 0.3 percent, the same as in March. 

The BoC's annual core inflation, which excludes volatile items, rose to 1.5 percent from 1.4 percent in March.

 Canada Inflation Rate Slows to 2.2%

Statistics Canada | Joana Taborda |
5/18/2018 12:55:37 PM