Canada's Annual Inflation Hits 6.8% In April, Highest Since 1991

Canadian consumer prices increased 6.8% year-on-year in April, the highest since January of 1991, according to official data on Wednesday.

The number accelerated from 6.7% in the previous month.

The rise in prices was largely driven by food and shelter, while gas prices decelerated from March, according to Canada's national statistical agency.

"Excluding gasoline, inflation rose 5.8% year over year in April, after a 5.5% gain in March. This was the fastest pace since the introduction of the all-items excluding gasoline special aggregate in 1999," it said.

Canadians paid 9.7% more in April for food purchased from stores compared to April 2021. "This increase, which exceeded 5% for the fifth month in a row, was the largest increase since September 1981."

In April, shelter costs increased 7.4% annually, the fastest pace since June 1983, following a 6.8% increase in March.

"Higher prices for energy sources used to heat homes, such as natural gas (+22.2%) and fuel oil and other fuels (+64.4%), contributed to the increase," it said.

Russia's military operation in Ukraine in late February continued to affect energy, commodity and most notably, food prices.

On a monthly basis, the consumer price index rose 0.6% in April, marginally above forecasts of 0.5%. -