Canadian Inflation Slows to 1.7% in April 2025, Statistics Canada Reports

The Consumer Price Index (CPI) in Canada rose 1.7 percent year over year in April 2025, down from a 2.3 percent increase in March, according to Statistics Canada. On a month-over-month basis, Statistics Canada said the CPI decreased by 0.1 percent in April.

Statistics Canada stated that lower energy prices were the main cause of the slower rise in annual inflation. Energy prices fell 12.7 percent in April compared with April 2024, following a 0.3 percent decline the previous month. Gasoline prices dropped 18.1 percent over the same period. Statistics Canada attributed the decrease in gasoline prices to the removal of the consumer carbon price and to lower crude oil prices. Statistics Canada also reported that global oil demand declined due to slower international trade related to tariffs, and that supply from the Organization of the Petroleum Exporting Countries and its partners increased. Prices for natural gas declined 14.1 percent in April after a 6.4 percent increase in March, with Statistics Canada stating that the removal of the consumer carbon price contributed to the drop.

Excluding the energy component, the CPI rose 2.9 percent in April, up from 2.5 percent in March. Statistics Canada reported that prices for travel tours rose 6.7 percent year over year, while prices for food purchased from stores increased 3.8 percent. The cost of food purchased from restaurants rose 3.6 percent during the same period.

Within food prices, Statistics Canada reported that fresh or frozen beef was up 16.2 percent, coffee and tea rose 13.4 percent, sugar and confectionery increased 8.6 percent, and fresh vegetables were up 3.7 percent.

Statistics Canada said the shelter component of the CPI, which includes housing costs, rose 3.4 percent year over year. Transportation costs dropped 1.9 percent, which Statistics Canada attributed mostly to lower gasoline prices.

According to Statistics Canada, inflation slowed in nine provinces in April compared with March. Quebec was the only province to see faster price growth, which Statistics Canada linked to its cap-and-trade system. In Nova Scotia, Statistics Canada said that a lower Harmonized Sales Tax rate contributed to slower annual price growth.

Statistics Canada stated that updated basket weights for the CPI will be released on June 17, 2025. The next CPI report, covering May 2025, is scheduled for publication on June 24, 2025.