Canada: Inflation stays at 3.3% in April
May 20, 2011
In April, consumer prices increased a seasonally adjusted 0.3% over the previous month, well below the 0.8% rise observed in March and market expectations of a 0.5% rise. As a result, annual headline inflation remained unchanged at March's 3.3% and overshot the inflation target of 2.0%1% for a second consecutive month. Energy prices continued to accelerate and increased a whopping 17.1% on an annual basis (March: +12.8% year-on-year) on the back of higher gasoline prices. Overall inflation, excluding soaring energy costs, would have been 2.0% in April. Meanwhile, food prices rose 3.3% yoy but declined 0.2% on a monthly basis. Annual core inflation, which excludes oil and fresh food prices, eased a notch from 1.7% in March to 1.6% in April. The Bank of Canada expects headline inflation to average 2.5% in 2011 and 2.1% in 2012.