Statistics Canada reported on Tuesday the country’s consumer price index
(CPI) rose 0.7 percent m-o-m in April, following an unrevised 0.5 percent m-o-m
jump in the previous month. That was the largest monthly advance in CPI since October
2022 (+0.7 percent m-o-m).
On a y-o-y basis, Canada’s inflation rate climbed 4.4 percent last
month, slightly accelerating from an unrevised
4.3 percent surge in March. That marked the first increase in the annual rate in 10 months.
Economists had forecast inflation would increase 0.4 percent m-o-m and 4.1
percent y-o-y in April.
According to the report, the April monthly increase in the headline CPI
was underpinned by gains in all 8 major
components, led by transportation
(+1.5 percent m-o-m), which, in its turn, was underpinned by a surge in
gasoline prices (+6.3 percent m-o-m) in response to the OPEC+ announcement of a
cut in oil output.
Meanwhile, the closely watched the Bank of
Canada's core index soared 4.1 percent y-o-y in April, following an unrevised 4.3
percent y-o-y surge in March. That was the smallest increase since December
2021 (+4.0 percent y-o-y).