Canada Inflation Rises to 2.8% While Core Measures Ease

Higher energy prices drove up Canada’s inflation rate to 2.8% in April, reaching its highest level in nearly two years but coming in lower than economists had expected as core measures cooled.

The conflict in the Middle East continued to push up gasoline prices last month, which rose by 28.6% from a year ago, Statistics Canada reported Tuesday. A base-year effect due to the removal of the consumer carbon levy in April 2025 also contributed to higher year-over-year price growth.