Canada’s Inflation Rate Falls to 1.7 Percent in April as Carbon Tax Is Lifted

A sign outside a building at Statistics Canada in seen in Ottawa on March 12, 2021. The Canadian Press/Justin Tang

Canada’s inflation rate slowed to 1.7 percent in April, driven by lower energy prices following the removal of the consumer carbon tax, according to Statistics Canada.

The country’s inflation rate was at 2.3 percent in March. It fell in April due to a combination of lower energy prices from the carbon tax’s removal, decreased oil demand due to U.S. tariffs, and increased oil supplies from the Organization of the Petroleum Exporting Countries, StatCan says.