Canada’s inflation rate picked up in April, with the Consumer Price Index rising 2.8% year over year, compared with 2.4% in March, says Statistics Canada.
Credit: P Markus WinklerThe shift was largely tied to energy, especially gasoline, which continues to shape the overall trend.
Gasoline prices climbed 28.6% from a year earlier, a sharp jump from the 5.9% increase recorded in March. Part of that rise reflects a base-year effect: the removal of the consumer carbon levy in April 2025 had pushed prices down at the time, making this year’s comparison look stronger. Ongoing supply uncertainty linked to conflict in the Middle East and the seasonal switch to a pricier summer fuel blend also added pressure. A temporary suspension of the federal fuel excise tax starting April 20 helped offset some of the increase.
Energy prices overall rose 19.2% year over year, up from 3.9% the month before. Fuel oil and other fuels surged 41.3%, while natural gas prices declined 2.4%, a smaller drop than in March.
Outside energy, price growth was more contained. Excluding gasoline, inflation slowed to 2.0% in April from 2.2% in March. Rent increases also eased, rising 3.6% year over year, though costs remain significantly higher than in 2021.
Some categories moved in the opposite direction. Travel tour prices fell 11.0% compared with a year earlier, driven by a steep monthly decline in April after elevated demand earlier in the year. Clothing and footwear prices rebounded, rising 2.0% after a 0.4% decline in March, led by higher prices for women’s clothing.
Regionally, prices accelerated in most provinces. Quebec saw a 3.0% increase, while British Columbia held steady at 2.5%, with slower rent growth and a declining population shaping the provincial trend.
The measures of core inflation, CPI-trim and CPI-median, which the Bank of Canada uses as one of the factors in determining the interest rate, fell to 2.0 and 2.1 from 2.2 and 2.3, 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 June 10, 2026.
Consumer Price Index, April 2026