OTTAWA — Statistics Canada says Canada’s annual inflation rate rose in April, increasing to 1.8 per cent from the 1.4 per cent the previous month.
The more concerning figure, however, was that underlying core inflation —— stripped of energy and food prices — increased sharply by 0.3 per cent from March, and now stands at 1.9 per cent on an annual basis.
The Bank of Canada will decide in a little over a week whether it is time to raise interest rates and it will be closely looking for signs of underlying price pressures in Canada.
April’s increase in the overall rate was bigger than economists had expected and was heavily influenced by increases in the price of gasoline and other energy products.
On a month-to-month basis, Canadians paid 0.3 per cent more for consumer goods than they did in March.