Canadian inflation fell to 1.7 per cent in April, mainly due to the removal of the consumer carbon tax, Statistics Canada said Tuesday morning.
Gasoline led the decline in consumer energy prices, the agency said. But Canadians generally paid more for food and travel tours.
Prices for groceries increased 3.8 per cent last month versus 3.2 per cent in March, led by fresh vegetables, fresh or frozen beef and coffee and tea. Prices for food purchased from restaurants also rose.
Meanwhile, prices for travel tours rose 6.7 per cent in April following a 4.7 per cent decline in March.
Prior to Tuesday’s release, economists largely expected the annual rate of inflation to have fallen to 1.6 per cent from 2.3 per cent in March.
Excluding energy, inflation was 2.9 per cent in April versus 2.5 per cent in March, according to the report.
“Even with tariffs in full swing, inflation in April eased slightly,” said Marwa Abdou, research director at Business Data Lab of the Canadian Chamber of Commerce.
But, Abdou warns, “this dip is only temporary. Persistent core inflation and external trade uncertainties will continue to keep the (central) bank on alert.”
The Bank of Canada’s next interest rate decision is scheduled for June 4.
