Canada: Inflation comes in at highest level since January 1991 in April
Consumer prices rose a seasonally-adjusted 0.67% from the previous month in April, coming in below March’s 1.02% rise. April’s result marked the weakest reading since January. The result was driven by moderating price pressures for transportation and food. Moreover, prices for recreation and culture dropped.
Inflation inched up to 6.8% in April from March’s 6.7%, above market expectations and driven by food and housing prices. Statistics Canada commented that the war in Ukraine and falling unemployment were putting upward pressure on inflation. April’s reading marked the highest inflation rate since January 1991. Annual average inflation rose to 4.8% in April (March: 4.5%). Lastly, core inflation ticked up to 5.7% in April, from March’s 5.5%. April’s reading increases the chance of more aggressive policy tightening at the Central Bank’s meeting in early June.