The annual rate of inflation rose slightly in April as Canadians paid more at the gas pumps, bucking a streak that had seen price pressures easing year-over-year since the summer in Canada.
Inflation was 4.4 per cent last month, up from 4.3 per cent in March, the agency said Tuesday.
April marked the first month inflation accelerated since June 2022, when the rate hit 8.1 per cent.
Gas prices were 6.3 per cent higher in April than March — the agency says this drove the overall acceleration in inflation.
Statistics Canada noted that gas prices were still 7.7 per cent lower last month than in April 2022, when Russia’s invasion of Ukraine disrupted energy markets globally.
Price growth in Alberta, specifically higher electricity prices, also contributed to the pressures, according to Statistics Canada.
Most economists had expected inflation to continue slowing, with Royal Bank of Canada calling for inflation to drop to 4.1 per cent last month.
Grocery prices grew 9.1 per cent last month in aggregate, climbing at a slower pace than the 9.7 per cent seen in March.
There was some relief in the produce aisle as lettuce prices dropped 3.3 per cent from a year earlier; fresh produce prices were up 8.8 per cent, down two percentage points from the annual increase in March. Coffee and tea prices also grew more slowly in April.
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Fresh fruit was subject to higher inflation, however, with orange prices in particular up 12 per cent year-over-year.
Shelter costs were up 4.9 per cent, down from 5.4 per cent in March, though Canadians continue to pay more on their mortgages with interest rates much higher than a year earlier. The mortgage cost index was up 28.5 per cent last month, and Statistics Canada noted that higher rates might be stimulating demand in the rental market, with rents up 6.1 per cent year-over-year.
The Bank of Canada has held its benchmark interest rate steady in two consecutive decisions as it waits to see the full effect its rate hikes have had on the economy.
The central bank has said this pause is conditional on inflation falling to around three per cent by mid-year.
— with files from The Canadian Press
