Annual inflation rate in April rises to highest in nearly a decade

Statistics Canada says the annual pace of inflation in April rose to its highest level in nearly a decade as gasoline prices posted a record increase compared with a year ago, when they plunged due to the pandemic.

The annual pace of inflation rose to 3.4 per cent in April, up from a 2.2 per cent year-over-year increase in the consumer price index in March.

The April reading was the highest since May 2011 when it was rose 3.7 per cent.

Gasoline prices in April were up 62.5 per cent on a year-over-year basis, the largest annual increase Statistics Canada has on record.

Removing gasoline prices, Statistics Canada says annual inflation for April would have clocked in at a 1.9 per cent.

Regionally, Statistics Canada says prices rose year-over-year in every province, but were generally higher in Atlantic Canada where furnace fuel oil, which has risen in price, is more often used.