Canadian Inflation Level Moves into Negative Territory – First Time Since 2009

According to Statistics Canada, Canada’s annual inflation rate fell by 0.2% in April, moving into negative territory for the first-time since 2009. The result of the COVID-19 pandemic and falling energy prices. Excluding energy prices, annual inflation rose by 1.6%. Josh Nye, senior economist at RBC Economics, said in a note “Prices for essentials matter more at this stage. In that sense, an increase in food prices (which jumped 3.4%) in April likely hurts more than a drop in gasoline prices helps.”