Canada’s annual inflation rate rose to 2.8 percent in April as higher energy prices linked to the Iran war trickled down through the economy, according to a new Statistics Canada report.
The May 19 report said higher gasoline prices “drove the acceleration” in the Consumer Price Index (CPI), which stood at 2.4 percent in March and 1.8 percent in February. StatCan said “supply uncertainty” tied to tensions in the Middle East and disruptions in the Strait of Hormuz pushed oil prices higher.
When gasoline is excluded, the CPI rose 2 percent in April compared to 2.2 percent in March.
On a year-over-year basis, gasoline prices rose by 5.9 percent in March and by 28.6 percent in April. The removal of the consumer carbon tax in April 2025 resulted in a monthly price decline for that month, putting upward pressure on the year-over-year gas prices for April 2026….