### Weekly Review

**Canada:**

In April, the Consumer Price Index (CPI) rose by 0.50%, as analysts had expected. After seasonal adjustment, the increase was 0.19%, following a 0.25% rise the previous month. The annual inflation rate was 2.7%, down from 2.9% in March.

**Price Increases:**

- **Transport:** +0.6%
- **Housing:** +0.5%
- **Healthcare/Personal Care:** +0.2%
- **Household Expenses:** +0.2%
- **Alcohol/Tobacco:** +0.4%

**Price Decreases:**

- **Recreation, Education, and Reading:** -0.2%
- **Food:** -0.2%

Prices remained stable for clothing and footwear.

**Regional Inflation:**

- **Quebec:** +3.0%
- **Alberta:** +3.0%
- **British Columbia:** +2.9%
- **Ontario:** +2.7%
- **Saskatchewan:** +1.0%
- **Manitoba:** +0.4%

**Core Inflation Measures:**

- **Trimmed CPI:** 2.9% (down 0.3 points)
- **Median CPI:** 2.6% (down 0.3 points)

The average of these measures fell to 2.7%.

The CPI numbers for April matched expectations. Gas prices rose sharply, but crude oil prices in May look promising. Food prices saw their largest drop since August 2020.

Excluding food and energy, prices increased by only 0.1%. The Bank of Canada's preferred core inflation measures showed widespread disinflation, with just a 0.1% rise in April. Over three months, these measures have an annualized rate below the central bank's 2.0% target.

The CPI excluding mortgage interest costs (CPIX) rose at an annual rate of just 0.5%, remaining stable in April.

Low inflation since early 2024 reflects the slowing Canadian economy. GDP per capita is declining, and unemployment has risen, which has slowed private sector wage growth. Small businesses are more concerned about their sales. The data confirms that the widespread inflation issue in Canada has been resolved.

It's time for the Bank of Canada to ease its monetary policy to avoid unnecessary damage to the economy.