Canada’s annual inflation climbed to 2.8% in April, the fastest pace in five years, as gasoline prices surged amid the Iran‑related oil shock and a prior removal of the consumer carbon levy. statistics Canada’s report on April 26 highlighted a 28.6% year‑over‑year jump in fuel costs, while travel and rent pressures offered modest relief.

Gasoline spikes 28.6% year‑over‑year after Iran conflict

Statistics Canada said the price of gasoline was 28 .6% higher in April compared with a year earlier, a direct fallout from the war in Iran that has disrupted global oil shipments . Analysts note that the conflict has tightened supply chains, pushing crude prices up and reverberating through North American fuel markets.

Carbon price removal adds 0.4% to April’s inflation tally

The decision to eliminate the consumer carbon price a year eariler removed a fiscal drag that would have otherwise lowered the headline figure. StatCan explained that the absence of this carbon charge inflated the annual comparison,nudging April’s rate upward by roughly four‑tenths of a percentage point.

Travel tours fall 11% while rent inflation eases

Despite soaring energy costs, an 11% drop in travel‑tour prices and a slowdown in national rent inflation helped temper the overall index. These sectors provided a counterbalance, preventing a larger surge that could have forced the Bank of Canada’s hand sooner.

Bank of Canada’s June 10 decision looms with mixed signals

The April data arrive just before the central bank’s next policy meeting on June 10. While the headline figure sits above the 2% target, officials have signaled a willingness to look through the temporary energy shock, suggesting that a rate hike is not inevitable.

Economists warn the full cost of the Iran shock may be hidden

Several economists cited in a Reuters poll argue that the current numbers may understate the longer‑term inflationary impact of the Middle‑East conflict, noting that suply‑side disruptions could bleed into other price categories in the months ahead.