Canada's Inflation Rate Rises to 2.8% in April Due to Energy Prices

Canada's inflation rate increased to 2.8% in April, marking the highest level in nearly two years, driven by rising energy prices. According to Jin10, the Canadian Statistics Bureau reported on Tuesday that gasoline prices surged by 28.6% compared to the previous year, influenced by ongoing Middle Eastern tensions. Additionally, the removal of the consumer carbon tax in April 2025 contributed to the year-on-year price increase due to base year effects. Excluding gasoline prices, the Consumer Price Index (CPI) rose by 2%. Despite reaching the highest inflation rate since May 2024, the figure was below the 3.1% increase anticipated by surveyed economists. Shaun Osborne, Chief Foreign Exchange Strategist at Scotiabank, noted that the overall inflation level was slightly lower than expected, and core inflation indicators also declined. As a result, the Bank of Canada can afford to remain patient.