The annual inflation rate in Canada fell to 1.7% in April of 2025 from 2.3% in the previous month, slightly above market expectations of 1.6%, but still reflecting the softest increase in consumer prices in seven months.

Published May 20, 2025

Analysis: The target rate set by BOC is 2.0% so the rate is within the target range. The slowdown was driven by a decline in energy prices (-1.7% vs -0.3% in March) as the removal of the consumer carbon tax magnified the impact that OPEC oil output hikes had on energy prices. Consequently, prices fell for gasoline (-18.1% vs -1.6%) and natural gas (-14.1% vs 6.4%), lowering costs for transportation (-1.9% vs 1.2%).

Here is a a 10-year inflation chart:

https://www150.statcan.gc.ca/n1/daily-quotidien/250520/dq250520a-eng.htm?HPA=1

Chart Analysis

Technical Analysis is about identifying the trend

The annual inflation rate in Canada fell to 1.7% in April of 2025 from 2.3% in the previous month, slightly above market expectations of 1.6%, but still reflecting the softest increase in consumer prices in seven months.