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

  • Statistics Canada reported Canada's annual inflation rate fell to 1.7 percent in April, down from 2.3 percent in March.
  • The significant drop in inflation was largely driven by the elimination of the national carbon tax on consumers, which led to an 18.1 percent decrease in gas prices compared to the previous year.
  • Excluding energy prices, core inflation rose to 2.9 percent in April from 2.5 percent in March, and Quebec was unique in not experiencing slower inflation due to its separate cap-and-trade system.
  • Senior economists noted that while headline inflation eased, stronger core inflation and signs of economic weakening complicate the Bank of Canada's upcoming decision on interest rates.
  • The Bank of Canada will meet in early June amid market uncertainty, balancing resilient core price pressures against weakening employment trends and scaled-back expectations for rate cuts.
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Winnipeg Free Press broke the news in Winnipeg, Canada on Tuesday, May 20, 2025.
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