Inflation in Canada dropped in April as the impact of tariffs sank in at the same time as the consumer carbon price was removed.
The showed overall prices increased by 1.7 per cent compared to April of last year, and that’s down from a 2.3 per cent year-over-year inflation increase in March.
Compared to March of this year, inflation fell by 0.1 per cent, versus the 0.2 per cent drop expected.
The 1.7 per cent reading by Statistics Canada compares to the estimate of 1.6 per cent from most polled economists.
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The Liberal government removed the consumer at the start of April.
Last month also marked the first full month of tariffs between Canada and the United States, though both sides have offered some exemptions in the trade dispute.
RSM economist Tu Nguyen says she doesn’t expect tariffs to drive the headline inflation number higher yet even if Canadians ended up paying more for certain goods like autos last month.
The April inflation figures come a little more than two weeks before the Bank of Canada is set to make its next interest rate decision on June 4.
– with files from the Canadian Press
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