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Consumer price index in April up 2% from year ago

Last Updated May 15, 2019 at 8:41 am EDT

Signage marks the Statistics Canada offiices in Ottawa on July 21, 2010. THE CANADIAN PRESS/Sean Kilpatrick

Canada’s annual inflation rate picked up its pace in April — a month that saw stronger price pressures on gasoline in provinces that have new carbon-pricing systems.

Statistics Canada’s consumer price index increased two per cent last month, up from its reading of 1.9 per cent in March and 1.5 per cent in February.

The April reading, which matched the expectations of economists, brings the measure in line with the Bank of Canada’s ideal inflation target of two per cent — a neutral position that doesn’t put immediate pressure on governor Stephen Poloz to adjust interest rates.

Consumers paid more for mortgage borrowing costs, fresh vegetables and auto sales last month, while they saw lower price tags for hotels, kids’ clothing and digital equipment.

The report says the six provinces where carbon levies were introduced or increased in April saw larger month-over-month rise in prices at the pump.

The provinces include New Brunswick, Ontario, Manitoba and Saskatchewan, which were mandated to follow the federal carbon-pricing system, as well as Prince Edward Island and B.C., which made voluntary carbon-levy changes.

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Can’t wait until the full effect of the carbon tax increases, aka $1.30-1.40 per litre hits. Then Trudeau will praise his economic growth package citing a 3% inflation rate before the bank of Canada increases interest rates and we get hit again.

May 15, 2019 at 9:13 am