Make Kitco Your Homepage

Canada records negative annual inflation rate for first time since 2009

Kitco News

OTTAWA (Reuters) - Canada’s annual inflation rate fell by 0.2% in April, the first time it has hit negative territory since 2009, as the coronavirus pandemic slashed energy prices, Statistics Canada said on Wednesday.

Analysts had forecast a negative rate of 0.1% in April, down from 0.9% recorded in March. Excluding energy prices, annual inflation rose by 1.6%.

The last time Canada recorded a negative annual inflation rate was in September 2009, when prices fell by 0.9%.

Energy prices sank by 23.7% from April 2019. Gasoline prices plunged 39.3%, the largest year-over-year decline on record, on lower global demand for oil and a production war between Russia and Saudi Arabia.

CPI common, which the central bank says is the best gauge of the economy’s underperformance, dipped to 1.6% from 1.7%. CPI median, which shows the median inflation rate across CPI components, stayed at 2.0%, while CPI trim, which excludes upside and downside outliers, was unchanged at 1.8%.

Reporting by David Ljunggren and Kelsey Johnson; Editing by Bernadette Baum

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.