Bank of Canada Governor Tiff Macklem has suggested that the federal budget presented last month wouldn’t have a serious impact on inflation.
Since last summer, the ruling Liberals have been significantly beaten by the Conservatives in opinion polls over the price of living.
Rapidly rising food prices are a selected cause for concern.
And although food prices are significantly higher than they were a couple of years ago, the info shows that food prices rose only moderately in April, increasing by 1.4 percent in comparison with last 12 months.
Meanwhile, higher gasoline prices tempered the slowdown in inflation last month, with pump prices rising 6.1% year-on-year.
Excluding gasoline, prices rose 2.5% in comparison with the previous 12 months.
“I think what’s really encouraging is that we’re seeing continued weakening in some of the core measures that the Bank of Canada is looking at when it comes to assessing when and how quickly to cut interest rates,” said Grantham in an interview.
The Bank of Canada’s core inflation, which excludes volatile prices, slowed last month and is now all below 3%.
