Canada’s inflation rate jumped to an annualized 2.8% in April as gasoline and energy prices across the country surged due to the war in Iran.
Statistics Canada said the Consumer Price Index (CPI) rose from an annualized 2.4% in March of this year as Canadians paid more for gas at the pumps.
During April, energy prices rose 19.2% year-over-year, following a 3.9% increase in March.
Gasoline prices rose by 28.6% after a 5.9% gain the previous month.
Excluding the impacts of gasoline, the Consumer Price Index rose at a slower pace year-over-year in April (up 2%) compared with March (up 2.2%).
Helping to offset the spike in energy and gas prices were year-over-year declines in the prices of travel tours and rents.
Inflation across Canada was up 0.4% month-over-month in April. On a seasonally adjusted monthly basis, inflation increased 0.3%.
Also notable was a 2% April increase in prices for clothing and footwear.
Looking out across the country, inflation in Quebec increased 3% during April and remained unchanged in British Columbia at an annualized pace of 2.5%.
The Bank of Canada will scrutinize the latest inflation data and use it to inform its next decision on interest rates that’s scheduled for June 10.
