Canada Annual Inflation Rate Advances 1.6% in April

By Paul VieiraFeaturesDow Jones Newswires

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 paul.vieira@wsj.com

(END) Dow Jones Newswires

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