Canada's annual inflation rate eased to 2.7 per cent in April, according to Statistics Canada, down from 2.9 per cent in March when measures of core inflation also eased.
In the scheduled release of the Consumer Price Index (CPI) on Tuesday, Statistics Canada said the decline was driven by slower price growth for food, services and durable goods. This decline was offset by a rise in petrol prices, which rose 6.1 per cent in April compared to a 4.5 per cent increase in March. Excluding gasoline, the CPI rose 2.5 percent in April.
This result is in line with analysts' expectations, according to Reuters.
On a monthly basis, the CPI rose 0.5 percent in April. Seasonally adjusted, the CPI rose 0.2 percent.
April's CPI report is an important one for the Bank of Canada, which has said it needs to see evidence that progress on inflation continues, especially when it comes to core inflation. In March, the CPI rose to 2.9 percent, but a measure of core inflation declined.
Core inflation measures moderated again in April, with CPI-median falling from 2.9 percent in March to 2.6 percent in April, while CPI-trim fell from 3.2 percent in March to 2.9 percent in April.
