Canada Annual Inflation Rate Advances 1.6% in April

Annual inflation in Canada rose in April at an identical pace from the previous month, while gauges of underlying, or core, price increases continued to exhibit softness -- likely reinforcing the Bank of Canada's view slack in the economy is weighing on inflationary pressure.

The all-items consumer-price index in April increased 1.6% from a year earlier, Statistics Canada said Friday, matching the price rise in March. Market expectations were for a 1.7% increase in April, according to economists at Royal Bank of Canada.

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Gasoline prices and shelter costs were among the main contributors to the gain in annual headline inflation.

On a month-over-month basis, CPI in April rose 0.4%.

Two of the three gauges of underlying, or core, inflation also advanced at a slower pace compared with the previous month. All of them remain below the 2% mark -- in a range between 1.3% and 1.6%. The Bank of Canada sets rate policy to achieve and maintain 2% inflation.

Write to Paul Vieira at

(END) Dow Jones Newswires

May 19, 2017 08:45 ET (12:45 GMT)