MNI 5 THINGS: Canada April CPI +2.2%, Core Inflation Firms>

By Courtney Tower 

     OTTAWA (MNI) - Canadian inflation edged down in April, Statistics 

Canada reported Friday, while data showed core inflation firmed. 

Following are the key points from the report: 

     - The Consumer Price Index, year-over-year, rose 2.2% following a 

2.3% increase in March. The price of services, at +2.3%, rose more 

slowly than in March (+2.7%), largely on price decreases in travel 

services (-6.0%). The goods index rose 2.1% following a 1.8% rise in 

March. 

     - Analysts surveyed by MNI had expected a 2.3% annual inflation 

rate for April, and a 0.3% rise on the month. The Bank of Canada's three 

preferred measures of core inflation showed underlying inflation firmed, 

as the range of readings moved up to 1.9%-2.1% from 1.9%-2.0%. 

CPI-common remained the same as in March at 1.9%. CPI-median and 

CPI-trim both rose by 2.1% following 2.0% rises in March. 

     - The 2.2% annual rise was accompanied by a 0.3% rise on the month 

from March, as expected by analysts. Energy overall rose 6.3% on the 

year and 3.8% on the month, while all items excluding energy were up 

1.9% on the annual rate and flat on the month. Gasoline was still the 

largest contributor to both the monthly and 12-month CPI increase. CPI 

excluding gasoline was flat on the month and up 1.7% on the year. 

     - Among the goods, prices for non-durables (+2.7%) increased less 

than in March (+3.0%), on lesser gains in gasoline prices. Prices for 

semi-durable goods rose 2.3% after a 0.2% rise in March, their largest 

increase since March 2015, mostly on higher prices for clothing. 

Durables rose 0.4% year-over-year and were down -0.2% month-over-month. 

     - On a seasonally adjusted monthly basis, CPI rose 0.1% in April, 

matching the increase in March. Five of eight major components 

increased, with recreation, education and reading (-1.5%) showing the 

largest decline. 

     --MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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