Inflation Rate Dips in April

Data released Friday showed Canada’s annual inflation rate inched back modestly in April as consumers paid less for travel services and as gasoline prices moderated.

Figures released by Statistics Canada showed the annual inflation rate was 2.2%, slightly short of economist expectations for 2.3%, though still above the Bank of Canada’s 2% target.

Two out of three of the central bank’s core inflation measures rose, leaving them at an average 2%.

The Bank of Canada has raised interest rates three times since last July and analysts expect to see at least one more hike this year.

Prices in the recreation component fell 0.2% from a year ago, driven by a drop in the cost of travel services. Annual gains in the transportation sector were also less than last month as gasoline prices were up 14.2%, pulling back from March’s 17.1% increase.

Higher costs for clothing and food helped to offset the softness elsewhere.