Ottawa, BC, Canada (4E) – The annual inflation rate in Canada climbed to the 2 percent level in April, the first time in two years due to higher energy prices, according to the Statistics Canada report released Friday.
The all-items consumer price index (CPI) climbed 2 percent in April from the previous year, in line with estimates by analysts’ polled by The Wall Street Journal, rising 1.5 percent from the previous month.
The annual core rate, which excludes food and energy prices that are typically volatile, edged higher by 1.4 percent, also in line with analysts’ consensus. The core rate in March advanced 1.3 percent.
On a month-over-month basis, the headline price jumped 0.3 percent and the core price gained 0.2 percent.
The annual inflation data in April was primarily boosted by rising cost of energy. Striping off energy prices, the CPI climbed 1.4 percent in the month, according to Statistics Canada.
Shelter prices rose 3.3 percent, primarily due to a 3.2 percent rise in property taxes. Mortgage-interest costs gained 0.2 percent, after a 0.6 percent fall in March.
Food prices were up 1.9 percent, boosted by a 4.5 percent rise in costs of meat. Analysts say that food costs were also driven by the weaker Canadian dollar.
The CPI inched up 0.2 percent in April on a seasonally adjusted basis, after rising 0.3 percent in the previous month.