Inflation Steady in April

Some goods which cost less were children’s clothing (down 6.6 per cent), footwear (down 5.0 per cent), and personal care supplies and equipment (down 3.6 per cent).

Canada’s April consumer price index report shows that this country doesn’t have inflation pressures to worry about yet.

On the other hand, the agency says fresh produce and clothing applied the most downward pressure on the inflation rate. What’s more, the three measures the Bank of Canada uses to assess core inflation (CPI-common, CPI-median and CPI-trim) were also cool in the month, averaging just 1.4 per cent.

On the opposite end of the spectrum, food prices have declined by 1.1 per cent over the same period.

Measures of annual core inflation fell, underlining Bank of Canada Governor Stephen Poloz’s concern that excess slack remains in the economy.

Heading into next week’s interest rate announcement, experts like BMO chief economist Doug Porter expect the Bank of Canada to emphasize the softening underlying inflation indicators, which strip out some of the more volatile components.

Statistics Canada has released data for March, and it shows the province’s retail sales jumped 8.9 per cent from a year earlier and 2.3 per cent from the previous month.

Prices rose 0.4 percent on a monthly basis, lagging the 0.5 percent median economist forecast.

Sales rose in six out of 11 sectors in March, accounting for 53 percent of total retail trade.

The gain in retail sales suggests that the economy is continuing to be supported by consumers, said Jimmy Jean, senior economist at Desjardins.

Manitoba’s retail sales also edged higher in March, rising by 0.3 per cent to $1.64 billion from $1.63 billion in February.