CAD: Gasoline Prices Pushed Inflation Higher in April – RBC Economics
CAD: Gasoline Prices Pushed Inflation Higher in April – RBC Economics
Research Team at RBC Economics, notes that the Canada’s consumer prices
rose 0.3% in April, matching market expectations and pushing the annual
rate of inflation up to 1.7% from 1.3% in March.
Key Quotes
“Core CPI rose 0.2% and the annual rate edged up to 2.2%. Core inflation
has held in a fairly tight range around 2% since mid-2015, which the
Bank of Canada attributes to offsetting pressures from economic slack
and currency depreciation. As in the previous month, April’s increase in
headline CPI was driven by rising gasoline prices (+8.9%), which have
picked up recently alongside higher crude oil prices.
Our forecast assumes oil prices will average close to current levels in
the second half of the year, which would result in the downward impact
on inflation from energy prices softening toward the end of 2016.”
