Canadian Inflation (Apr) - May 20, 2020

Canadian inflation, as measured by the Consumer Price Index (CPI) fell by 0.2 percent in April year-over-year, down from a 0.9 percent gain in the previous month. This was the first year-over-year decline in the CPI since September 2009. Energy prices were the main drag on inflation due to the drop in global demand, excluding this category, national CPI rose by 1.6 percent year-over-year. Prices were also down for transportation (-4.4%), clothing and footwear (-4.1%) and recreation and education (-0.7%). In contrast, prices (3.4%) for food accelerated in April. The Bank of Canada's three measures of trend inflation fell 0.1 percentage points, averaging 1.8 percent in April. The CPI was negative in all provinces except for Quebec and BC.  

In BC, CPI was flat in April year-over-year, following a 1.2 percent increase in March. Gas prices continued to fall (-19.6%), along with prices for clothing and footwear (-7.4%), transportation (-2.4%), and goods (-2.2%). Clothing and footwear retailers had to drop their prices to clear inventory but were restricted to online sales which meant fewer sales. Meanwhile, prices grew for health and personal care (0.9%), household furnishings (0.4%) and alcohol/tobacco/cannabis (0.3%). As BC begins to re-open retail stores and foodservice establishments, we hope April will represent a floor on price declines. 

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BCREA is the professional association for more than 23,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.

To demonstrate the profession's commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods.