Canada’s annual inflation rate climbed to 2.8 per cent in April, driven largely by a sharp rise in energy costs and a major year-over-year increase in gasoline prices, Statistics Canada said Tuesday.
The latest reading marks another increase in inflation after the annual rate rose to 2.4 per cent in March. Energy costs remained the main source of upward pressure, with prices rising 19.2 per cent compared with April of last year. That followed a much smaller 3.9 per cent annual increase in March.
Gasoline Prices Jump 28.6% Year-Over-Year
Gasoline posted an even steeper increase, rising 28.6 per cent year-over-year in April. Statistics Canada pointed to two key factors behind the jump: a supply crunch in the Strait of Hormuz and the seasonal shift to the more expensive summer blend of gasoline.
The increase in pump prices played a central role in pushing overall inflation higher. Gasoline carries significant weight in household budgets and often affects consumer sentiment because drivers see price changes directly and frequently.
The April inflation report shows energy prices continued to shape Canada’s consumer price picture for a second straight month. In March, higher energy prices also drove the annual inflation rate up to 2.4 per cent.
The latest figures suggest Canadians faced renewed cost pressure at the gas pump and across energy-related expenses in April. While the headline inflation rate stayed within a moderate range, the sharp rise in gasoline and broader energy prices shows how quickly global supply issues and seasonal fuel changes can affect household costs.
Economists and policymakers will likely watch upcoming inflation data closely to see whether the April increase reflects a temporary energy-driven spike or signals broader price pressure in the Canadian economy.
