Analysis

View the most recent version.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.

Archived

This page has been archived on the Web.

The Consumer Price Index (CPI) rose 0.8% in the 12 months to April, after increasing 1.2% in March. The increase in April was the smallest since October 2013.

The smaller year-over-year increase in the CPI in April compared with March was mostly attributable to lower energy prices. Excluding energy, the CPI increased 2.2% on a year-over-year basis in April, following a 2.3% increase the previous month.

Lower energy prices moderate the increase in the Consumer Price Index

The energy index decreased 13.5% in the 12 months to April, following a 10.4% year-over-year decline in March.

The natural gas index was down 14.6% on a year-over-year basis in April, following a 0.4% increase the previous month. This deceleration was primarily attributable to a price decline in Ontario.

Gasoline prices were down 21.0% in April compared with the same month a year earlier, after registering a 19.2% year-over-year decline in March. In addition, fuel oil prices decreased 20.0% year over year in April, following a 15.2% decline in March.

12-month change in the major components

Prices rose in seven of the eight major components on a year-over-year basis in April. The rise in the CPI was led by higher prices for food. The shelter index, which includes natural gas and fuel oil, also increased in the 12 months to April, although at a slower pace than in March. The transportation index was the only major component to post a decline.

Consumers paid 3.6% more for food in April compared with the same month a year earlier. Prices for food purchased from stores were up 4.0% on a year-over-year basis, led by an 11.2% increase in meat prices. A 4.3% rise in prices for fresh vegetables also contributed to the increase in food prices. Prices for food purchased from restaurants rose 2.7% year over year in April.

The shelter index posted a 0.5% year-over-year rise in April, following a 1.4% rise the previous month. The increase in April was the lowest since March 2010. The smaller increase in April compared with the previous month was mainly attributable to the decline in the natural gas index. In addition, the mortgage interest cost index declined 0.9% in the 12 months to April, following a 0.7% decrease the previous month.

The transportation index declined 4.2% on a year-over-year basis in April, following a 3.9% decrease in March. For the sixth consecutive month, the year-over-year decrease in the transportation index was mainly attributable to lower gasoline prices. Prices for the purchase of passenger vehicles increased 1.4% year over year in April, following a 1.8% rise the previous month.

Prices for clothing and footwear increased 1.3% in the 12 months to April, after recording a 2.6% increase the previous month. The indexes for women’s and men’s clothing posted smaller year-over-year increases in April than in March.

12-month change in the provinces

Consumer prices rose in seven provinces in the 12 months to April, with Saskatchewan posting the largest increase. Conversely, three of the Atlantic provinces registered year-over-year declines.

Every province recorded a year-over-year decline in its energy index.

In Ontario (+0.8%) and British Columbia (+0.5%), the year-over-year consumer price increases in April were half as large as those recorded in March. In both provinces, natural gas prices declined on a year-over-year basis in April, after posting increases in March. Natural gas prices in Ontario declined 16.4% in the 12 months to April, while they decreased 18.1% in British Columbia.

Alberta’s CPI increased 0.7% on a year-over-year basis in April, after decreasing 0.1% in March. In Alberta, where natural gas prices tend to be volatile, natural gas prices declined 16.2% in the 12 months to April. This followed a 42.4% year-over-year decrease in March.

Consumer prices declined in Prince Edward Island (-1.2%), Newfoundland and Labrador (-0.4%) and New Brunswick (-0.1%) in the 12 months to April. In all the Atlantic provinces, prices for fuel oil, which is used extensively for home heating in the region, posted larger year-over-year declines in April than in the previous month. The effect of the decline in fuel oil prices was greatest in Prince Edward Island, where the basket weight of fuel oil is 10 times greater than at the national level.

Seasonally adjusted monthly Consumer Price Index decreases

On a seasonally adjusted monthly basis, the CPI decreased 0.1% in April, following a 0.3% rise in March.

Of the eight major components, four decreased and four increased on a seasonally adjusted monthly basis in April. The largest decrease was recorded by the recreation, education and reading index, which fell 0.6%. The seasonally adjusted index for clothing and footwear (-0.3%) also declined.

On a seasonally adjusted monthly basis, the index for alcoholic beverages and tobacco products rose 0.5% in April, while the food index increased 0.3%.

Non-seasonally adjusted monthly Consumer Price Index decreases

On a monthly basis and before seasonal adjustment, the CPI edged down 0.1% in April, after increasing 0.7% in March.

Consumer prices declined in seven provinces on a monthly basis in April, with Prince Edward Island (-0.7%) posting the largest decrease. Alberta (+0.1%) posted the only monthly increase, while Quebec and Saskatchewan recorded no change.

Bank of Canada’s core index

The Bank of Canada’s core index increased 2.3% in the 12 months to April, after rising 2.4% in March.

On a monthly basis and before seasonal adjustment, the core index rose 0.1% in April. This increase followed a 0.6% gain in March.

The seasonally adjusted core index was unchanged on a monthly basis in April, following a 0.4% increase in March.