Inflation rate 1.6% for second month amid higher energy prices, lower food costs
OTTAWA — The country’s annual inflation rate once again rang in at 1.6 per cent last month as higher energy costs offset a seventh consecutive decline in grocery store prices, Statistics Canada said Friday.
The agency’s consumer price index for April identified higher prices for gasoline and natural gas as the biggest upward drivers in year-over-year inflation.
On the other hand, fresh produce and clothing applied the most downward pressure on the inflation rate.
Heading into next week’s interest rate announcement, experts like BMO chief economist Doug Porter expect the Bank of Canada to emphasize the softening underlying inflation indicators, which strip out some of the more volatile components.