Canadian inflation fell to 2.7% in April, which may increase the possibility of an interest rate cut in June

According to Jin10, data released by Statistics Canada showed that Canada’s inflation fell to a three-year low of 2.7% in April, in line with expectations, and core indicators continued to decline, which may increase the possibility of an interest rate cut in June. The current annual rate of inflation is closer to the Bank of Canada's 2% target, and Bank of Canada Governor Macklem said at the time that the committee wanted to allow inflation to continue to cool before cutting interest rates. The Bank of Canada predicts that inflation will remain around 3% in the first half of 2024, falling to 2.2% by the end of this year, and to 2% by 2025. An acceleration in gasoline price increases in April added to upward pressure on inflation as the rising cost of switching to a summer blend, higher oil prices due to supply issues and an increase in the federal carbon tax all contributed to higher prices.