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Canada's annual inflation rate in April drops to 1.7%, but core measures rise

  • Canada's annual inflation rate dropped to 1.7 percent in April 2025, while core inflation measures increased during the same period.
  • This shift followed a steady decline caused by seven consecutive rate cuts by the Bank of Canada before April 16 and the recent removal of the federal carbon tax.
  • Energy prices plunged 12.7 percent, with gasoline and natural gas prices falling 18.1 and 14.1 percent respectively, while grocery and travel tour prices rose year over year.
  • Core inflation markers, including CPI median and CPI trim, reached 13-month highs at 3.2 and 3.1 percent, reflecting persistent underlying price pressures despite the overall inflation decline.
  • The Bank of Canada maintained interest rates on April 16 and stated it could act decisively to control inflation ahead of its next rate announcement on June 4.
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Winnipeg Free Press broke the news in Winnipeg, Canada on Tuesday, May 20, 2025.
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