Canada’s April inflation data set to show impact of carbon price removal

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By Staff The Canadian Press

Posted May 20, 2025 7:05 am

1 min read

'Canada’s economic outlook amid tariff uncertainty'

6:14 Canada’s economic outlook amid tariff uncertainty

Global central banks are sounding the alarm about the economic impact of U.S. President Donald Trump’s tariff policies. BMO Senior Economist Priscilla Thiagamoorthy discusses the outlook for growth and inflation in Canada and the United States amid trade uncertainty – Apr 20, 2025

Statistics Canada is set to release inflation data for April today.

Market data shows economists on average expect the annual rate of inflation cooled to 1.6 per cent last month, from 2.3 per cent in March.

The Liberal government eliminated the consumer carbon price at the start of April, offering motorists some relief at the pump.

'Gas prices fall after consumer carbon tax ends in most of Canada'

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Last month also marked the first full month of tariffs between Canada and the United States, though both sides have offered some exemptions in the trade dispute.

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RSM economist Tu Nguyen says she doesn’t expect tariffs to drive the headline inflation number higher yet even if Canadians ended up paying more for certain goods like autos last month.

The April inflation figures come a little more than two weeks before the Bank of Canada is set to make its next interest rate decision on June 4.

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