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Canada’s annual inflation rate edges up to 6.8% in April -Breaking

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© Reuters. FILE PHOTO – Tourists look for souvenirs at Gastown after cruise ship arrivals to Canadian ports increase, just two years following the closure of the sector due to COVID-19. This was in Vancouver (British Columbia), Canada, May 13th, 2022. REUTERS/Jenn

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By Julie Gordon

OTTAWA (Reuters), Canada’s annual inflation rate accelerated in April. It was ahead of analysts expectations and largely driven by higher food and shelter prices. Statistics Canada data were released on Wednesday.

Inflation headlines topped 6.8% in April. This was just a beat to analyst predictions that it would remain flat at 6.7% and closer towards the 6.9% recorded in January 1991. The Bank of Canada had set a 1-3% limit for the month. It reached its 13th consecutive month.

Statscan reported that grocery prices increased 9.7% in April. This is the biggest increase since September 1981. Consumers now pay more to shop at their local supermarkets. There were gains in prices for staple food starchy like bread and pasta.

Statscan reported that the Russian invasion of Ukraine late February increased wheat prices. Prices for food have also been affected by poor weather conditions in the growing regions.

Statscan will be changing the way it tracks car prices beginning with next month’s release. A separate paper stated that the headline rate for March would have been 6.9% rather than 6.7% if the new methodology had been implemented at the previous basket update.

The fastest rise in shelter prices since June 1983 was due to rising rent and high housing costs. In April, mortgage interest rates rose on April for the first-time since April 2020.

In April, gasoline prices were slightly lower than March. However, gasoline prices were still slightly higher than last year’s April.

CPI, the Bank of Canada’s most reliable indicator of economic performance, increased to 3.2%, up from 3.0% in March, and well ahead of analysts forecasts of 2.9%. CPI trim was at 5.1%, and CPI median at 4.4%.

Canadian Dollar traded at 1.2807 USD to the greenback (or 78.08 U.S. Cents).

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