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Canada`s annual rate of inflation appeared "in full retreat" in April as the economic downturn continued to push consumer prices lower.
Statistics Canada said Wednesday that its consumer-price index fell to 0.4 per cent during the month -- the lowest level in 14 years -- from 1.2 per cent in March, while the core rate eased to 1.8 per cent from two per cent.
The core rate strips out volatile items such as food and energy, and is a key factor in setting the Bank of Canada`s monetary policy.
Consumer prices eased in all provinces, with the biggest slowdown recorded in Alberta at -0.7 per cent.
"While upward pressure on the consumer-price index came primarily from food, the slowdown was due mainly to price declines for energy and reduced upward pressure from non-energy shelter components," the federal agency said.
"Excluding food, the CPI fell 1.1 per cent in the 12 months to April. Excluding energy, the CPI rose 2.4 per cent over the same period."
Most economists had forecast an annual inflation rate of 0.6 per cent for April. The core rate of 1.8 per cent was in line with expectations and below the Bank of Canada`s target rate of two per cent.
The April inflation reading was the lowest since December 1994.
April was only the second time the Alberta rate has dipped into negative territory, said ATB Financial economist Dan Sumner.
But he noted that the trend "does not call for alarm bells" because prices are being compared to last year, when energy prices were rising toward record levels.
Douglas Porter, deputy chief economists at BMO Capital Markets, said "inflation is now in full retreat ... even with the recent backup in gasoline prices.
"While underlying price trends are holding firmer, they also look to wane notably, especially now that the fever in grocery prices has finally broken," he said.
Statistics Canada said food prices rose 7.1 per cent in April from a year earlier, down slightly from the annual rate of 7.9-per-cent rise in March.
The biggest food-price increases were for fresh vegetables, up 26 per cent, fresh fruit at 16.8 per cent, cereal products, 9.6 per cent, and beef and chicken, both up nine per cent.
Shelter costs rose by an annual 0.2 per cent in April from 2.1 per cent the previous month.
Read the full article here.
Statistics Canada said Wednesday that its consumer-price index fell to 0.4 per cent during the month -- the lowest level in 14 years -- from 1.2 per cent in March, while the core rate eased to 1.8 per cent from two per cent.
The core rate strips out volatile items such as food and energy, and is a key factor in setting the Bank of Canada`s monetary policy.
Consumer prices eased in all provinces, with the biggest slowdown recorded in Alberta at -0.7 per cent.
"While upward pressure on the consumer-price index came primarily from food, the slowdown was due mainly to price declines for energy and reduced upward pressure from non-energy shelter components," the federal agency said.
"Excluding food, the CPI fell 1.1 per cent in the 12 months to April. Excluding energy, the CPI rose 2.4 per cent over the same period."
Most economists had forecast an annual inflation rate of 0.6 per cent for April. The core rate of 1.8 per cent was in line with expectations and below the Bank of Canada`s target rate of two per cent.
The April inflation reading was the lowest since December 1994.
April was only the second time the Alberta rate has dipped into negative territory, said ATB Financial economist Dan Sumner.
But he noted that the trend "does not call for alarm bells" because prices are being compared to last year, when energy prices were rising toward record levels.
Douglas Porter, deputy chief economists at BMO Capital Markets, said "inflation is now in full retreat ... even with the recent backup in gasoline prices.
"While underlying price trends are holding firmer, they also look to wane notably, especially now that the fever in grocery prices has finally broken," he said.
Statistics Canada said food prices rose 7.1 per cent in April from a year earlier, down slightly from the annual rate of 7.9-per-cent rise in March.
The biggest food-price increases were for fresh vegetables, up 26 per cent, fresh fruit at 16.8 per cent, cereal products, 9.6 per cent, and beef and chicken, both up nine per cent.
Shelter costs rose by an annual 0.2 per cent in April from 2.1 per cent the previous month.
Read the full article here.