Canada’s inflation dipped to 2.7% in month of April

Statistics Canada released its Consumer Price Index report for April this week, and the numbers show a two-point drop since the last figure was announced.

In March, Canada’s inflation rate was sitting at 2.9 per cent.

Statistics Canada reported that the two-point year-over-year change to the consumer price index (CPI) was led by a deceleration in food prices, services, and durable goods.

The only metric that outpaced its March counterpart was the price of gas. In April, fuel saw an increase of 6.1 per cent while in March it only grew by 4.5 per cent.

A sustained decline in the overall CPI may lead the Bank of Canada to cut its interest rate next month. That figure is scheduled to be released on June 5.

The bank has set a target of two per cent inflation in order for it to cut rates.

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