Canada's overall CPI dropped to 1.7%, but the core indicators rose slightly.

Statistics Canada said on Tuesday that Canada's overall inflation rate in April fell from 2.3% in March to 1.7%, as overall energy prices plummeted by 12.7% after the federal consumer carbon tax was canceled. However, two of the three core inflation indicators closely monitored by the Bank of Canada reached 13-month highs due to potential price pressures. The Bank of Canada had predicted last month that overall data would fall to around 1.5% due to the cancellation of the carbon tax and the drop in oil prices. Gasoline prices fell by 18.1% compared to April 2024, while natural gas prices fell by 14.1% year-over-year. However, compared to the same period last year, consumer spending on groceries increased by 3.8%, higher than March's 3.2%. Travel prices in April rose by 6.7% year-on-year. On a monthly basis, the inflation rate decreased by 0.1%, while analysts had previously predicted a 0.2% decrease.