Inflation cooled to 2.7% in April as food price growth slowed

Though food prices still rose in April, they did so at a slower pace of 1.4 per cent compared to 1.9 per cent in March

Canada's consumer price index cooled to 2.7 per cent in April, down from 2.9 per cent in March, led by the slower growth of food prices, Statistics Canada said on May 21.

Though food prices still rose in April, they did so at a slower pace of 1.4 per cent compared to 1.9 per cent in March, the data agency said. Price growth for food bought from restaurants also eased.

The cost of meat mostly drove the decline, but other food products that also contributed were non-alcoholic beverages; bakery and cereal products; fruit, fruit preparations and nuts; and fish, seafood and other marine products.

Meanwhile, consumers paid 6.1 per cent more for gas in April after a 4.5 per cent increase in March. Statistics Canada said that a switch to summer petrol blends, supply concerns and higher federal carbon levies contributed to the uptick.

April's figures marked the lowest inflation rate in three years, since March 2021's 2.2 per cent.