Canada’s annual inflation rate fell to 1.7% in April while energy costs dropped, grocery and travel costs rose, according to Statistics Canada.The Consumer Price Index had climbed 2.3% in March. April’s slowdown was driven by a 12.7% drop in overall energy prices, led by gasoline, which dropped 18.1%. Analysts tie the gas price drop to the April removal of the federal carbon tax, softer world crude prices, and higher output from OPEC+ nations..Natural gas prices also cooled, falling 14.1% after climbing in March. Excluding energy, the CPI advanced 2.9%, showing most other goods and services kept moving higher.Food prices continue to go higher. Grocery prices grew 3.8% from a year earlier, up from 3.2% in March, and have now outpaced headline inflation for three straight months..Fresh vegetables jumped 3.7%, while beef prices surged 16.2%. Coffee, tea, sugar, and confectionery also posted strong gains. Restaurant meals cost 3.6% more than a year ago.Travel tour prices climbed 6.7%..Month to month, the CPI edged down 0.1%. On a seasonally adjusted basis, it slipped 0.2%, marking the first monthly retreat since December.Economists say April’s data reinforce expectations that the Bank of Canada could begin trimming interest rates this summer, provided underlying price pressures keep easing. The central bank’s next rate decision is set for June 4.
