Canada’s inflation rate climbs to 2.8% in April as gas prices surge

Canada’s annual inflation rate accelerated to 2.8 per cent in April, marking the fastest pace of price growth in nearly two years, according to new data released Tuesday by Statistics Canada.

The increase was driven largely by sharply higher gasoline prices, which rose 28.6 per cent compared with April of last year. Rising tensions and conflict involving Iran and the broader Middle East disrupted global oil shipments, pushing fuel costs higher and increasing prices at gas stations across Canada.

April also brought the seasonal transition to more expensive summer gasoline blends, adding further pressure on fuel prices.

Statistics Canada noted that the federal government’s temporary suspension of the fuel excise tax midway through the month helped ease some of the upward pressure on prices.

The April inflation reading represents an increase from March’s annual inflation rate of 2.4 per cent. Economists surveyed by Reuters had expected inflation to climb even higher, forecasting it would rise above three per cent.

The latest figure is also Canada’s highest annual inflation rate since May 2024, highlighting ongoing affordability concerns for households already facing elevated living costs.

Statistics Canada added that annual comparisons were also affected by Ottawa’s earlier decision to eliminate the consumer carbon price, which influenced year-over-year calculations and contributed to a higher inflation reading.