Inflation slows again in April, raising hope for rate cut

Make sure to circle June 5 on your calendar after Statistics Canada’s latest figures show inflation continues to slow down. The Consumer Price Index for April rose by 2.7%, compared to 2.9% in March. If you take gas prices out of the equation, the CPI was actually down to 2.5% in April.

“April’s CPI report adds weight to the thesis that interest rate cuts will begin in June,” the Conference Board of Canada said about the Bank of Canada’s next interest rate announcement on June 5. “On balance, signs suggest that June remains ‘within the realm of possibilities’ for the Bank’s first rate cut.”

Sticky inflation and high interest rates discourage investment, slowing the economy and adding to uncertainty.