Ottawa, May 20:
The national inflation rate fell to 1.7% in April, marking a significant slowdown driven largely by a sharp decline in energy prices. The drop follows the government’s recent decision to remove the carbon tax, leading to noticeable relief in household fuel and utility costs.
Energy prices, including gasoline and natural gas, recorded a substantial decrease, which helped pull down the overall inflation figure from the previous month. However, price increases were still observed in essential categories like food and daily essentials, indicating that the cost of living remains a concern for many families.
Economists suggest that while the reduction in inflation is a positive development, rising prices in core sectors like groceries and housing continue to exert pressure on average consumers. The central bank is expected to closely monitor these trends ahead of its next policy announcement.
The latest data offers mixed signals for the economy — a relief for consumers at the pump, but continued caution in other sectors.