- Canada's consumer price index rose 4.4% YoY in April, the first increase in the headline number since June 2022.
- The rise in April is higher than the 4.1% gain expected by economists.
- Core measures of inflation continued to ease, averaging 4.2%, giving the central bank room to keep rates on pause.
- The Bank of Canada expects CPI to drift lower to 3% around midyear and return to near the 2% target by the end of 2024.
- Higher rent prices and mortgage interest costs contributed most to the acceleration, while gasoline prices led the gains in the headline month-over-month movement.
Inflation in Canada Quickens to 4.4% With Housing Costs Rising
Inflation unexpectedly reaccelerated in Canada, but core measures continued to ease. Canada's CPI rose 4.4% YoY in April, the first increase in the headline number since June 2022.