Consumers paid 2.2% more in April for the goods and services in the Consumer Price Index (CPI) basket than they did in April 2006, a slightly slower growth than the 2.3% increase recorded in March. However, excluding energy components, consumer prices increased at their fastest pace (+2.4%) in almost four years.
Much of the upward pressure on the all-items index in April again came from the owned accommodation sector, while energy components exerted relatively less influence. In April, average gasoline prices were slightly lower than they were last year. Prices at the pump, although relatively high, jumped 13.5% between March and April 2006, while they increased only 2.6% over the same months this year, pushing the 12-month variation of the gasoline index in the negative territory (-0.6%).
The all-items index without energy components advanced by 2.4% in April, up from 2.1% in March. This was the strongest year-over-year rise posted by this index since May 2003. In April, the Bank of Canada's core index was up 2.5%, compared with the same month of the previous year. The growth in this index, which is used by the Bank of Canada to monitor the inflation-control target, increased in relation to the previous month, when it was 2.3%. This was the strongest rise posted by this index since March 2003. On a monthly basis, the all-items index increased by 0.4% between March and April. This was much slower than the 0.7% and 0.8% increases in the two previous months. Two energy components, gasoline and natural gas, accounted for most of the increase in the index in April.
The all-items index without energy components increased by 0.2% in April. The rate of increase in this index dropped for a second straight month, after rising 0.3% in March and 0.6% in February. The core index rose by 0.2% between March and April following a 0.3% increase the previous month.