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Canada's April inflation rate slows to 3-year low
The annual inflation rate in Canada slowed to its lowest level in 3 years after reaching 2.7% last April, compared to 2.9% in the previous March, to be in line with analysts’ average expectations.
The broad-based slowdown in the headline CPI was driven by prices of food, services and durable goods,
The inflation rate for food purchased in stores slowed in April to 1.4% compared to 1.9% in March.
Gasoline prices contributed to limiting the decline in inflation after they rose by 6.1% in April compared to 4.5% in March.
Excluding gasoline, the CPI for all items slowed to an increase of 2.5% year-on-year, compared to 2.8% in March.
On a monthly basis, the CPI rose by 0.5%, also lower than expectations of 0.6%.
After the data was released, financial markets increased their bets on a rate cut in June to nearly 55% from 39% earlier.
The Canadian dollar fell after the inflation data to 1.365 against the US dollar.
