Canadian Inflation Comes In Slower Than Expected

“Canada’s inflation rate was below economists’ forecasts in April as a decline in food prices tempered increases in gasoline.

Consumer prices rose 3.3 percent from a year earlier, matching the gain in March, Statistics Canada said today in Ottawa. Economists predicted a 3.4 percent gain based on the median estimate in a Bloomberg surveys of 27 economists. The index rose 0.3 percent in April from March, slower than the prior monthly gain of 1.1 percent and below the 0.5 percent forecast by economists.

Inflation will advance faster than 3 percent this quarter, Bank of Canada Governor Mark Carney said in a May 16 speech, which he said was “modestly stronger” than his earlier projection. Carney reiterated future interest-rate increases will be “carefully considered” after three rises last year, and said some of the higher inflation was due to temporary gains in sales taxes, food and energy costs.

Energy prices rose 17.1 percent in April from a year earlier, Statistics Canada said today. Gasoline prices rose 26.4 percent, bringing them within 5 percent of their record high posted in July 2008.”

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