Canadian inflation accelerated in April as surging energy costs, particularly gasoline prices, pushed the annual inflation rate higher.
The Consumer Price Index rose 2.8% year-over-year in April, up from the 2.4% increase posted in March, with energy prices emerging as the primary driver behind the increase, Statistics Canada said Tuesday.
Gasoline prices jumped 28.6% from a year earlier, a significant acceleration from the 5.9% increase recorded in March.
The sharp rise in gasoline prices reflected several factors, including ongoing supply uncertainty tied to the conflict in the Middle East and the continued closure of the Strait of Hormuz, a critical global oil shipping route. The transition to more expensive summer gasoline blends also added upward pressure to prices.
Statistics Canada noted that part of the increase was also tied to a base-year effect following the removal of the federal consumer carbon levy in April 2025. Gasoline and natural gas prices fell sharply at that time, meaning current prices are now being compared against a much lower benchmark from a year ago.
Overall energy prices climbed 19.2% year over year in April, compared to a 3.9% gain in March. Fuel oil and other fuels surged 41.3% amid elevated global crude oil prices linked to the geopolitical tensions in the Middle East. Natural gas prices also contributed to inflation pressure, declining only 2.4% compared to a much steeper 18.1% drop in March.
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