Canada’s inflation rate slowed significantly in April, driven primarily by a steep drop in energy costs, according to data released Tuesday by Statistics Canada.
The Consumer Price Index (CPI) rose 1.7% year-over-year, down from 2.3% in March. The decline was largely attributed to an 18.1% drop in gasoline prices and a 14.1% fall in natural gas costs following the removal of a federal carbon levy and a global dip in crude oil prices.
Analysts noted that oil prices have declined due to weakened international demand, as trade disruptions and increased global supply continue to affect the market.
Despite easing inflation overall, food prices continued to climb, rising 3.8% in April. Notable increases were recorded in fresh vegetables, beef, coffee and tea, sugar, and prepared foods.
The continued rise in food costs has added pressure to household budgets, even as broader inflationary pressures ease.
