Costly fruits and vegetables push up Canada inflation

Canadian prices for fruits and vegetables soared by more than 11 percent in April compared
AFP

Ottawa (AFP) – Canadian consumer prices rose 1.7 percent in April compared to a year ago, as the cost of importing fresh fruits and vegetables spiked, the government statistical agency reported Friday.

The uptick in food costs was less than in previous months, but was still a top source of inflation, alongside housing costs.

Prices for fruits and vegetables soared by more than 11 percent, while meat prices increased 1.5 percent, according to Statistics Canada. In winter and spring, produce is largely imported into Canada from the United States and these costs have risen as the Canadian dollar fell against the US greenback.

The cost of owning and maintaining a home, meanwhile, rose 1.4 percent in the month, due mainly to higher prices for electricity.

Overall inflation was in line with analysts’ forecasts.

But the benchmark index used by the Bank of Canada to set its key lending rate — which excludes volatile items such as food and energy — breached its 2.0 percent ceiling.

In April, prices of cars and trucks rose 4.6 percent, while filling them up at the pump also cost more — marking a turnaround and the largest monthly rise in fuel costs since February 2015.

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