By Gordon Isfeld
OTTAWA (MaceNews) – The prices of consumer goods in Canada rose by 2% annualized in April, up from a pace of 1.9% in the previous month, with seven of the eight key readings tracked by Statistics Canada Wednesday driving the overall increases.
The core rate showed no change for the first time since December.
The lone major component to decline last month was in the household sector, where spending on furnishings and equipment contracted slightly.
Meanwhile, shelter prices were up an annual 2.7% in April, providing the Consumer Price Index with a hefty increase in prices.
The Bank of Canada’s preferred price measures showed a monthly increase of 0.4% in the month, while the year-over-year gain was 2%. The CPI common reading was 1.8% over year, the medium reading was 1.9% and the trim index came in at 2.0% on a year-over-year basis.
Most economists had already expected consumer prices in April to come in at a monthly 0.4%.
“Finally a Canadian data point that was exactly as expected. From headline to details, there were no big surprises” said Benjamin Reitzes, Canadian Rates & Macro Strategist at BMO Capital Markets.
“The slowing core measures are noteworthy, but aren’t shocking. This report isn’t likely to change much for the BoC.”