Toronto 
Canada’s annual inflation rate decreased to 1.7% in April, down from 2.3% the previous month, primarily driven by lower energy prices, according to the latest Consumer Price Index (CPI) data released Tuesday.
The Consumer Price Index, excluding energy, rose 2.9%, indicating continued price growth in other sectors.
Here are the highlights of Statistics Canada’s April Consumer Price Index report:
- Energy costs dropped 12.7% in April compared to the previous year. Gasoline prices fell 18.1%, mainly due to the federal carbon price removal and weaker global oil demand. Increased production from OPEC+ also contributed. Natural gas prices declined 14.1%, reversing a March increase.
- The all-items CPI decreased by 0.1% on a monthly basis in April. When adjusted for seasonal factors, the monthly CPI saw a 0.2% drop, highlighting a shift in short-term price trends.
- Grocery prices rose 3.8% in April, higher than the 3.2% increase in March. Key drivers included beef (+16.2%), coffee and tea (+13.4%), and sugar and confectionery (+8.6%). Food prices have consistently outpaced overall inflation for three straight months.
- Restaurant food prices also saw continued increases, rising 3.6% year over year in April, following a 3.2% rise in March, reflecting broad food service cost pressures.
- Travel tour prices climbed 6.7% in April from the same month a year earlier. This reversed a 4.7% decline in March. Month-over-month, travel prices rose 3.7% in April after an 8.0% decrease in March, pointing to seasonal and demand-driven fluctuations.
- Regional inflation trends varied. Nine provinces recorded slower price growth in April compared to March. Quebec was the exception, with a more moderate gasoline price drop due to its separate cap-and-trade system. Nova Scotia saw reduced inflation due to a lower Harmonized Sales Tax rate.
The latest figures reflect a broader cooling in overall inflation pressures, primarily influenced by energy markets, while consumers continue to face rising costs in categories such as food and travel.
The measures of core inflation, CPI-trim and CPI-median, which the Bank of Canada uses as one of the factors to determine the interest rate, rose to 3.1 and 3.2 from 2.9 and 2.8, respectively.
CPI-trim and CPI-median are core inflation measures that exclude extreme price changes. CPI-trim removes the outer 40%, while CPI-median focuses on the median price change.
The next scheduled date for announcing the bank rate is Wednesday, June 4, 2025.
