Canada: Inflation drops to lowest level since September 2024 in April
Latest reading: Inflation eased to 1.7% in April, following March’s 2.3%. April’s reading represented the lowest inflation rate since September 2024 but was slightly above market expectations. The figure was largely driven by slower growth in prices for housing and a sharper fall in prices for transportation, the latter driven by subdued international energy prices plus the elimination of the federal carbon tax.
The trend was unchanged, with annual average inflation coming in at March’s 2.2% in April. Meanwhile, core inflation rose to 2.5% in April from the previous month’s 2.2%.
Finally, consumer prices fell 0.06% in April over the previous month, swinging from the 0.31% rise recorded in March. April’s result marked the weakest reading since December 2024.