Canada's April CPI Seen Hitting 3.1% as Energy and Carbon-Tax Base Effects Lift Prices
Updated
Updated · tmgm.com · May 15
Canada's April CPI Seen Hitting 3.1% as Energy and Carbon-Tax Base Effects Lift Prices
2 articles · Updated · tmgm.com · May 15
TD Securities expects Canada’s April CPI to accelerate to 3.1% year on year, up 0.7 percentage point, with prices rising 0.6% from March.
Gasoline and other energy products are driving most of the jump, while higher oil and fertilizer costs are also pushing up food prices and airfares.
Core inflation is projected to stay much softer, with CPI-trim and CPI-median near 2.1% to 2.2% and monthly gains around 0.2%.
That split leaves headline inflation above the Bank of Canada’s April projections, but economists expect policymakers to look through the energy-led spike ahead of the June decision.
The forecast aligns with other recent calls for a 3.1% inflation peak in Q2 as geopolitical pressure on oil adds to Canada’s price outlook.
With inflation and unemployment rising, what happens if the Bank of Canada's traditional tools are not enough?
As a new inflation wave hits, can Canada’s record-debt households avoid a major financial crisis?
Beyond oil prices, how will the Mideast conflict permanently reshape global food and energy supply chains?