File photo courtesy of © Can Stock Photo / ElenathewiseFile photo courtesy of © Can Stock Photo / Elenathewise
Sarnia

Lower gas prices help slow inflation in April

The removal of the consumer carbon tax helped slow inflation last month to 1.7 per cent year over year, down from March's rate of 2.3 per cent.

The price at the gas pump dropped 18.1 per cent in April from a year ago, partly because of Ottawa's decision to remove the consumer carbon tax, but global crude oil prices also fell. International trade slowed as tariffs began to take effect, impacting global oil demand, and the Organization of Petroleum Exporting Countries, or OPEC, also increased supply.

Natural gas prices dropped 14.1 per cent, down from March's 6.4 per cent increase.

Without energy, Statistics Canada said the consumer price index rose 2.9 per cent in April.

Inflation impacted prices at the grocery store, too.

Groceries rose 3.8 per cent year-over-year, after a 3.2 per cent jump in March. The price of groceries rose faster than all other items in the Consumer Price Index for the third consecutive month. Fresh vegetables cost 3.7 per cent more, fresh or frozen beef rose 16.2 per cent, coffee and tea jumped 13.4 per cent, and sugar rose 8.6 per cent.

After March's 3.2 per cent increase in the cost of food bought from restaurants, those meals cost another 3.6 per cent in April.

For those planning a trip, the cost of booking a travel tour rose 6.7 per cent in April after a 4.7 per cent increase the month before.

Canada's inflation rate is in the middle of the pack of G7 nations. The U.S. reported a rate of 2.3 per cent. In Japan, it was 3.4 per cent. Germany's rate was 2.2 per cent, 0.9 per cent in France, and 1.9 per cent in Italy. The United Kingdom hasn't released its inflation report yet, but economists predict it'll be between 3.3 per cent and 3.6 per cent.

Statistics Canada plans to release the Consumer Price Index report for May on June 24.

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