Canadian CPI rose 1.6%vs +1.7% expected

The Consumer Price Index (CPI) rose 1.6% on a year-over-year basis in April, matching the gain in March.

Overall, energy prices rose more year over year in April than they did in March, while declines in food prices moderated.

Excluding food and energy, the CPI was up 1.5% on a year-over-year basis in April, following a 1.7% increase in March.

Prices were up in six of the eight major components in the 12 months to April, with the transportation and shelter indexes contributing the most to the year-over-year rise in the CPI. The food index declined on a year-over-year basis for the seventh consecutive month.

Transportation costs rose 4.2% over the 12-month period ending in April, after increasing 4.6% in March. This deceleration was led by the purchase of passenger vehicles index, which rose less on a year-over-year basis in April than in March. Gasoline prices posted a 15.9% year-over-year increase in April, slightly larger than the 15.2% rise registered in March. On a monthly basis, gasoline prices rose 9.5% in April, partly due to supply disruptions at oil refineries, as they changed over to summer fuel blends.