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OTTAWA - Canada`s annual inflation rate fell to the lowest level in almost 15 years last month as the impact of last year`s sharp spike in gasoline prices continue to push overall consumer prices toward negative territory.
Statistics Canada said prices overall fell in April by 0.1 per cent on a month-to-month basis - 0.3 per cent on a seasonally adjusted basis - pushing the inflation rate to 0.4 per cent.
This is the lowest rate on inflation since December 1994 and represents a sharp drop from the 1.2 per cent rate recorded in March.
The steep drop was slightly more than economists predicted, but likely had little impact on the Canadian dollar, which moved up one cent to above 87 cents US on Wednesday morning on the strength of oil prices.
"It appears all but certain that Canadian headline inflation will dip into negative terrain on a year-over-year basis in the next report, matching what we have seen recently in the U.S., Japan and China," said Douglas Porter, deputy chief economist with BMO Capital Markets.
Read the full article here.
Statistics Canada said prices overall fell in April by 0.1 per cent on a month-to-month basis - 0.3 per cent on a seasonally adjusted basis - pushing the inflation rate to 0.4 per cent.
This is the lowest rate on inflation since December 1994 and represents a sharp drop from the 1.2 per cent rate recorded in March.
The steep drop was slightly more than economists predicted, but likely had little impact on the Canadian dollar, which moved up one cent to above 87 cents US on Wednesday morning on the strength of oil prices.
"It appears all but certain that Canadian headline inflation will dip into negative terrain on a year-over-year basis in the next report, matching what we have seen recently in the U.S., Japan and China," said Douglas Porter, deputy chief economist with BMO Capital Markets.
Read the full article here.