Canada Inflation Slowest Since September on Carbon Tax End
Article content
(Bloomberg) — Canadian inflation eased to its slowest pace since September on the elimination of the consumer carbon tax and lower oil prices, but core measures accelerated.
Article content
Article content
The consumer price index rose 1.7% from a year ago in April, down from 2.3% in March, Statistics Canada data showed Tuesday. The median projection in a Bloomberg survey of economists saw the headline rate rising by only 1.6%.
Article content
The index fell 0.1% on the month, compared with economists' projections of a 0.2% drop.
Article content
Article content
The average of the Bank of Canada's two preferred core inflation measures accelerated to a 3.2% yearly pace, up from 2.9% in March and higher than economist estimates. The three-month moving average of the core rates rose to 3.4%, from 2.9% previously.
Article content
The loonie reversed the day's losses versus the US dollar and traded at C$1.3927 as of 9:50 a.m. in Ottawa. Canadian debt fell across the curve, with the two-year yield up about nine basis points to 2.624%.
Traders in overnight swaps lowered bets that the central bank will cut rates at its next meeting, putting the odds at about 35% compared with nearly 70% previously.
Article content
Policymakers at the central bank had expected headline inflation to slow to about 1.5% in April due to lower crude demand and the removal of the carbon tax. Their challenge now is predicting the inflation path ahead as opposing pressures — a weaker economy and tariff-driven costs — influence consumer prices.
Article content
Article content
'The Bank of Canada typically looks through level shifts in prices like the one driven by the removal of the carbon tax and officials will clearly be concerned with the recent acceleration in core measures of inflation,' Royce Mendes, managing director and head of macro strategy at Desjardins Securities, said in a report to investors.
Article content
'That said, given that the removal of the federal carbon price will also likely impact inflation expectations, there's scope for the change to further affect price dynamics in a positive way.'
Article content
The Bank of Canada paused its easing campaign in April to await more clarity on US President Donald Trump's trade policy. Before the inflation print, economists had largely expected the bank to restart its rate-cutting cycle as early as the next meeting on June 4, after jobs data earlier this month pointed to a deteriorating job market.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Calgary Herald
26 minutes ago
- Calgary Herald
Oxford Properties takes over seven office towers in Calgary and Vancouver business districts
Article content Oxford Properties, a Canadian investor in real estate and property management, has bought out seven downtown office towers in Calgary and Vancouver's business districts. Article content In a news release shared Tuesday, the Toronto-based company announced that it had bought out Canadian Pension Plan Investment Board's 50 per cent interest in the office properties for $730 million, leaving it with full ownership of the $1.5-billion portfolio. Article content Article content In Calgary, that includes the 25-storey Eau Claire Tower (611,000 sq. ft), Centennial Place (1.3 million sq. ft), 400 Third (820,000 sq. ft) and The Stack (558,000 sq. ft). In Vancouver, the company would own the Guinness Tower (262,000 sq. ft), Marine building (177,000 sq. ft) and the MNP Tower (277,000 sq. ft), amounting to a four million square foot portfolio. Article content Article content Five of the seven properties were built after 2010, with only 400 Third and Centennial Place built in 1988 and 2010, respectively. Article content The move is a reversal of the company's longtime previous practices to dispose of office assets. Article content 'Oxford has been a net seller of office for over a decade to achieve portfolio diversification. We believe now is an opportune time to rotate capital back into this asset class, and this portfolio ticks all the right boxes,' said Tyler Seaman, the company's executive vice-president. Article content 'As the asset and property manager of this portfolio, this transaction represents a compelling opportunity for us to further invest in markets that we not only understand intimately, but in buildings where our teams have built great relationships with our customers and where we consistently use this advantage to outperform the market.' Article content
Vancouver Sun
an hour ago
- Vancouver Sun
NDP on TMX: We didn't want it. They built it. So let's use its full potential
VICTORIA — The B.C. NDP government responded with mostly discouraging words this week to growing national speculation about a new pipeline to transport the country's oil to the West Coast. Prime Minister Mark Carney explored the idea of 'an oil pipeline to tidewater' with industry executives in Calgary on Sunday and with provincial and territorial leaders in Saskatoon on Monday. Ontario Premier Doug Ford described the pipeline as 'absolutely critical' to weaning Canada off excessive dependence on the U.S. market. Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Westcoast Homes will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Alberta Premier Danielle Smith spoke of a 'grand bargain' to deliver a 'million-barrel-a-day pipeline to the northwest B.C. coast' and '$20 billion a year in revenues' to government coffers. Then there were the comments of B.C. deputy premier Niki Sharma, who represented Premier David Eby at the Saskatchewan meeting. Asked point blank if the New Democrats would be 'OK with fast-tracking' a pipeline to transport Alberta bitumen to Prince Rupert or Kitimat, Sharma replied: 'Well, you know what, at this stage, you've heard the premier say — we have a difference of opinion about whether or not a bitumen pipeline should go in … the northern part of the province.' Besides, said Sharma: 'There's no (pipeline) proponent at this time, there's no project that is really there to look at. Let's focus on those projects that are ready, with strong investment and alignment.' She's right that there is no current proposal for such a pipeline. One may be forthcoming after Carney's meeting with industry executives and Smith's lobbying on carbon capture projects in Alberta. In a followup statement, Sharma added: 'We are focusing on these shovel-ready projects, not theoretical projects with no proponents. There is also an existing, underused pipeline that Canadian taxpayers paid $34 billion for, with capacity to spare. She meant the Trans Mountain Pipeline expansion or TMX, which the New Democrats vowed to fight 'with every tool in the tool box' and failed to stop. Eby also made a disparaging reference to TMX at the recent conference of Western premiers. 'That pipeline is not at full capacity right now,' said Eby. 'Why wouldn't we ensure that that public infrastructure was fully used first before dividing ourselves on a project where there is no proponent.' Eby and Sharma exaggerate the degree to which the TMX is 'underused … with capacity to spare' after one year of operation. The Canadian Energy Regulator reports that the line has operated at about 80 per cent of its 890,000 barrel-per-day capacity since coming online in May 2024. Moreover, the performance improved in the first quarter of this year. 'The pipeline ran at about 85 per cent capacity during the three-month period ending in March,' Chris Varcoe reported in the Calgary Herald this week. The Globe and Mail's Emma Garney further reported that the line 'hit a high of 90 per cent' in March. The demand is such that Trans Mountain has already begun test work to boost capacity by up to 10 per cent by the end of 2026. A longer-term project would add pumping stations to boost it to 1.14 million barrels a day, later in the decade. So much for the B.C. NDP notion that the $34 billion pipeline is languishing through insufficient use. But rather than consult the country's energy regulator or the national newspapers, perhaps Eby and Sharma were taking their lead from Steven Guilbeault. Guilbeault served as environment minister in the Justin Trudeau Liberal government, where he flourished as a fan of carbon taxation and an opponent of fossil fuel expansion. Carney reassigned him to the Canadian Heritage Department at about the same time as the PM reduced the carbon tax to zero and began talking up the need to expand resource production. It didn't stop the new heritage minister from wandering outside his lane last month to announce that Canada has no need of more pipelines because TMX was operating at '40 per cent capacity' and the world was approaching 'peak oil production.' In the first instance, Guilbeault clearly didn't know what he was talking about and in the second, there's much room to debate about when peak oil will be reached. Still, there is a capacity issue regarding the TMX terminal in Burnaby, though not one that involves the pipeline. The terminal is already busy with tankers, having loaded some 741 in the first quarter of the year at a rate that fell just short of one a day in March. But tankers are unable to load fully because of the risk of grounding in Burrard Inlet. The New Democrats have recognized the limitation and come out in support of a federal proposal to dredge Burrard Inlet to a depth that full tankers can traverse. Leading the call is Energy Minister Adrian Dix. As NDP leader, Dix's snap decision to oppose TMX in the midst of the 2013 election campaign contributed to his loss to Christy Clark. Now that the line is running, Dix supports maximizing its use. 'We built it. We paid for it. We should use it,' he says, taking a realistic view of a project that cost him much. vpalmer@
Vancouver Sun
an hour ago
- Vancouver Sun
Fleet's Hilary Knight, Sceptres' Natalie Spooner highlight list of unprotected PWHL players
Several stars could be on the move as the Professional Women's Hockey League's new franchises start building their rosters this week. The league's six original teams released their lists of protected players Tuesday. The Boston Fleet are keeping goalie Aerin Frankel, defender Megan Keller and forward Alina Muller, while the championship-winging Minnesota Frost will hang on to forwards Kendall Coyne Schofield and Taylor Heise, and defender Lee Stecklein. The Montreal Victoire protected goalie Ann-Renee Desbiens, captain Marie-Philip Poulin and forward Laura Stacey, and the New York Sirens went with standout rookie Sarah Fillier, and defenders Ella Shelton and Micah Zandee-Hart. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. After making their first appearance in the PWHL final, the Ottawa Charge are hanging onto forward Emily Clark, first-year goalie Gwyneth Philips and defender Ronja Savolainen, while the Toronto Sceptres have protected defender Renata Fast, and forwards Blayre Turnbull and Daryl Watts. Just as revealing are the players that weren't included and are available for Vancouver and Seattle to sign this week or select in Monday's expansion draft. Here are some of the top players up for grabs. HILARY KNIGHT: Perhaps the most surprising name on the list of eligible players, the Boston Fleet captain is coming off a 2024-25 campaign where she tied for the league lead in scoring with 29 points (15 goals, 14 assists). The 35-year-old Knight is up for the Billie Jean King award as the PWHL's most-valuable player and has a long history on the international stage, including a gold medal with the United States at the 2025 women's world championships in April. CLAIRE THOMPSON: The Minnesota Frost had tough decisions to make after winning back-to-back Walter Cup titles, and opted to leave the 27-year-old defender exposed. Thompson put up four goals and 14 assists in her rookie season this year, and is a finalist for the PWHL defender of the year award. She also has history with Vancouver's new general manager, Cara Gardner Morey, having played for her at Princeton. ERIN AMBROSE: The veteran Canadian defender is a prime pick for expansion teams looking for both leadership and a stalwart presence on their blue line. Ambrose helped the Montreal Victoire finish the regular season atop the PWHL standings with 13 assists in 28 games. The 31-year-old from Keswick, Ont., has also been a key piece of Canada's women's squad, and won Olympic gold at the 2022 Beijing Games. ALEX CARPENTER: Over two seasons with the New York Sirens, Carpenter has emerged as an offensive specialist. The 31-year-old American notched 20 points (11 goals, nine assists) last season and was among the league's top-10 goal scorers. With ample experience on the international scene, Carpenter's presence would be missed by the Sirens. EMERANCE MASCHMEYER: A leg injury took the goalie out of Ottawa's lineup in mid-March and the Charge protected rookie netminder Philips after she backstopped the team to a nail-bitter overtime loss in the deciding game of the PWHL final. The 30-year-old Maschmeyer has big-game experience, helping Canada to gold at the 2022 Olympics. She's also coming off a season where she posted a 6-7-2-0 record with a .913 save percentage, a 2.58 goals-against average and two shutouts. NATALIE SPOONER: Spooner was named league MVP after the PWHL's inaugural season. The Toronto Sceptres forward spent much of the season rehabbing from knee surgery and played just 14 games in 2024-25, contributing five points (three goals two assists). A two-time gold medallist for Canada, the 34-year-old Spooner would add skill, experience and leadership to any expansion team. CANADIAN CONTENT: A number of the Canadians who won silver at the women's world championship in April are available to the expansion squads. Forwards up for grabs include Jenn Gardiner (Montreal Victoire), Julia Gosling (Toronto Sceptres), Brianne Jenner (Ottawa Charge), Emma Maltais (Toronto Sceptres), Sarah Nurse (Toronto Sceptres), Kristin O'Neill (Montreal Victoire), Jamie Lee Rattray (Boston Fleet) and Danielle Serdachny (Ottawa Charge). Vancouver and Seattle could also bring in defenders Sophie Jacques (Minnesota Frost) and Jocelyne Larocque (Ottawa Charge), and goalie Kristen Campbell (Toronto Sceptres). Vancouver and Seattle can sign players during an exclusive signing window between Tuesday and next Monday. An expansion draft will take place on Tuesday, followed by a league-wide entry draft on June 24.
