Canada Inflation Rate Down To 0.4% In April


The Consumer Price Index (CPI) rose 0.4% in the 12 months to April, following a 1.0% increase in March. Declining gasoline prices were largely responsible for the 0.6 percentage point difference in the 12-month change in the CPI. Price decreases for the purchase of passenger vehicles were also a factor.

Gasoline prices decreased 6.0% on a year-over-year basis in April, after falling 0.3% in March. The decrease in April was the largest year-over-year decline in gasoline prices since October 2009.

Excluding gasoline, the CPI rose 0.8% in the 12 months to April, following a 1.1% increase in March.

Shelter costs increased 1.3% in the 12 months to April, following a 1.1% rise in March. Electricity prices and rent advanced year over year, while mortgage interest cost decreased 4.3%.

Food prices increased 1.5% on a year-over-year basis in April, after increasing 1.8% in March. Consumers paid more for food purchased from stores, as prices for meat rose 3.2%. In contrast, prices for sugar and confectionery declined 2.8%.

Consumers paid 1.2% more for food purchased from restaurants in the 12 months to April, following a 2.2% increase in March. The smaller increase in April compared with March was largely attributable to price declines in British Columbia.

Transportation costs declined 2.1% in the 12 months to April, after posting no change the previous month. In addition to price decreases for gasoline, prices for the purchase of passenger vehicles declined 0.7% year over year in April, after rising 0.8% in March.

Statistics Canada | Duarte Ricardo | duarte.ricardo@tradingeconomics.com
5/17/2013 1:38:34 PM