Canada’s April Inflation Slowest in Two-Years

Canada’s inflation rate last month was the slowest since October 2013, falling below the central bank’s target band on a drop in energy costs.

The consumer price index rose 0.8 percent in April from a year ago after March’s 1.2 percent pace, Statistics Canada said Friday from Ottawa. The core rate, which excludes eight volatile products, increased 2.3 percent. That measure accelerated at a 2.4 percent pace in March, the fastest since 2008.
Economists surveyed by Bloomberg forecast the total rate would rise 1 percent and core by 2.4 percent.

Bank of Canada Governor Stephen Poloz said in a May 19 speech it may take until around the end of 2016 before the economy reaches full output and price gains return sustainably to a 2 percent target.

The report is the last major indicator before the next interest-rate announcement on May 27, and economists surveyed by Bloomberg predict the benchmark overnight rate will remain at 0.75 percent where it’s been since a reduction in January.


Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell