Canada's annual inflation rate accelerated to 2.8% in April from 2.4% in March, driven largely by a surge in gasoline prices after the Iran war pushed global crude oil prices sharply higher, data showed on Tuesday.
This marks the first time in almost two years that the annual consumer price index reading hit 2.8%, underscoring how the war in Iran, which started on February 28, was quickly trickling down through the economy.
However, the inflation reading was below analysts' expectations as prices of travel and tours, some accommodation expenses and furniture dropped in April on an annual basis. Analysts had forecast an annual rate of 3.1%.
Gasoline prices rose by 28.6% in April and over 38% since the war began, driving transportation costs up by 7.6%, their highest since November 2022.
Prime Minister Mark Carney has offered a five-month relief on gasoline excise duty of 10 cents per liter.
