UPDATE - Canada's annual consumer inflation at 2.7% in April, down from 2.9% in March

UPDATES WITH ADDITIONAL FIGURES, INFORMATION

By Ovunc Kutlu

ISTANBUL (AA) - Canada's consumer inflation annually came in at 2.7% in April along with market estimates, and slowing down from a 2.9% year-on-year gain in March, the country’s statistical authority said Tuesday.

The figure reflects a significant slowdown since the 8.1% annual gain recorded in June 2022 — the highest level for the consumer price index (CPI) in 39 years.

"Broad-based deceleration in the headline CPI was led by food prices, services and durable goods," Statistics Canada said in a statement.

"The deceleration in the CPI was moderated by gasoline prices," it said, noting they rose at a faster pace in April with 6.1%, compared to 4.5% in March.

On a monthly basis, the consumer price index was at 0.5% in April, also slowing down from a 0.6% increase in March. The figure was in line with market expectations.

Statistics Canada said the monthly gain in CPI was mainly driven by prices for gasoline.

"Consumers paid 6.1% more at the pump year over year in April, following a 4.5% increase in March. Faster growth was driven by a 7.9% month-over-month increase in April," said the statement.

Prices for food, which are purchased from stores, increased with a gain of 1.4%, but its index grew at a slower pace year-on-year compared to March when it rose 1.9%.

Prices for food purchased from restaurants rose 4.3%, after a 5.1% increase in March.

"From April 2021 to April 2024, prices for food purchased from stores increased 21.4%," the statement said.

Alberta province in western Canada showed a higher rent increase for the eighth consecutive month, with 8.2% in April, compared to the national level, according to the agency.