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Economists expect end of consumer carbon price pulled down April inflation to 1.6%

Economists expect April 2025 inflation in Canada to cool to 1.6 percent following the removal of the consumer carbon price at the start of the month.
This expected decline follows the carbon price removal, a tax change that came after a two-month federal tax break ended in mid-February, amid ongoing trade uncertainty from tariffs with the U.S.
Canadian motorists benefited from lower global oil prices due to increased OPEC production, while slower shelter inflation and trade-related supply chain shifts added complexity to the inflation outlook.
In April, the central bank maintained its key interest rate unchanged as it monitored the economic effects of ongoing trade tensions, with money markets currently assigning more than a 64 percent chance of a 25-basis-point reduction at the June 4 policy meeting.
The carbon price removal is forecasted to reduce headline inflation by about 0.7 percentage points monthly for the coming year, supporting inflation near the Bank of Canada's 2 percent target despite labor market weaknesses.

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Five things to watch for in the Canadian business world in the coming week

TORONTO — Five things to watch for in the Canadian business world in the coming week: Inflation Statistics Canada will put out its latest reading for inflation on Tuesday when it publishes its consumer price index for April.

6 days ago·Prince George, Canada

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