There’s plenty of troubling economic news around if you want to find it. But one thing that most consumers are not worrying about too much lately is inflation—that is, at least not in April.
Last month, Canada’s overall inflation rate as measured by the Consumer Price Index (CPI) fell to 0.4 per cent yearover- year. That ‘s down from an annual rate of 1.0 per cent in March and well below the 2.0 per cent target rate set by the Bank of Canada. The “core” rate of inflation, which strips out eight of the most volatile prices in the index and gives a bit of a clearer read on price pressures, was 1.1 per cent.
Alberta’s inflation rate was somewhat higher than the national average in April, clocking in at 1.3 per cent compared to 12 months ago. That is the second highest rate of inflation in the past year for the
province. Natural gas prices for consumers were one of the largest contributors to higher inflation, rising a whopping 41.9 per cent compared to April 2012.
Consumers saw other significant price increases for fresh fruit (+13.2 per cent) and Internet access
subscriptions (+13.8 per cent). However, some prices fell in April. Year-over-year, the cost of gasoline at the pump dropped 7.4 per cent. That decrease, however, may be undone in the May
survey of consumer prices. As drivers filling up around the province this week know, gas prices are on their way up—just in time for the summer driving season.*
*Courtesy of Todd Hirsch, Chief Economist, ATB Financial