The latest Consumer Price Index report may be welcome news for Canadians struggling to make ends meet. Inflation continued to decelerate last month to 2.7 per cent.
The Bank of Canada said it was looking for more signs inflation would slow down before announcing a cut in its key lending rate, and it is possible Statistics Canada has given it the ammunition it needs.
The Bank of Canada makes another policy announcement on June 5.
The report issued on Tuesday credited food prices, services, and durable goods for lowering inflation in April. However, the rate would have been lower had gasoline prices not moderated the slowdown.
The switch to summer blend, concerns about supply, and the federal carbon tax drove gas prices up 6.1 per cent in April from a year ago. Compared to March, the cost of gas went up 7.9 per cent.
Excluding gas, the rate of inflation was 2.5 per cent.
Canadians paid 1.4 per cent more at the grocery store last month. The cost of meat rose 4.4 per cent, by two-tenths of a percentage point for baked goods and cereal, and 2.1 per cent for other food products and non-alcoholic beverages. Fruit, fruit preparations, and nuts cost less, down eight-tenths of a percentage point, while fish and seafood cost 1.8 per cent less.
Since April 2021, the cost of food bought from the grocery store has risen 21.4 per cent.
Dining out cost Canadians another 4.3 per cent more than in April 2023.
Statistics Canada will release its report for May on June 25.