Canada’s annual inflation rate eased to 1.7% in April 2025, down from 2.3% in March, driven by lower energy prices, particularly gasoline, new data from Statistics Canada released on Tuesday showed.
However, the Consumer Price Index (CPI) reading came in slightly above economists’ expectations of a 1.6% year-over-year increase.
Energy prices plunged 12.7% in April compared to a year earlier, led by an 18.1% drop in gasoline prices, the agency said.
The decrease was attributed to the elimination of the federal carbon charge, weaker global oil demand linked to slower international trade, and increased supply from OPEC+ producers. Natural gas prices also declined 14.1% year over year.
Excluding energy, inflation accelerated slightly to 2.9%, up from 2.5% in March, highlighting ongoing price growth in other categories.
Grocery prices continued to climb, rising 3.8% annually, outpacing the all-items CPI for a third straight month. Notable contributors included beef, up 16.2%, coffee and tea, up 13.4%, and confectionery products, which were 8.6% higher. Restaurant food prices also increased 3.6%.
Prices for travel tours rebounded, rising 6.7% year over year in April after a decline in March, and were up 3.7% on a monthly basis.
On a month-over-month basis, the CPI fell 0.1%, and declined 0.2% on a seasonally adjusted basis.
Regionally, inflation slowed in nine provinces. Quebec was the exception, as gasoline prices decreased less due to the province’s cap-and-trade system. In Nova Scotia, a provincial HST rate cut contributed to lower prices.