The April 2021 CPI released yesterday indicates year-over-year consumer price growth (+3.4%) in April. A significant proportion of this increase is due to a steep decline in prices in April 2020 when the pandemic first hit. As some regions extended restrictions to limit the spread of COVID-19, causing employment losses for some Canadians, prices grew 0.5% month over month in April 2021.
Prices rose in every major component on a year-over-year basis.
Food prices rose at a slower pace in April (+0.9%) than in March (+1.8%). The slowdown was partly attributable to lower prices for fresh vegetables (-7.2%), as prices for tomatoes fell 29.8% on a year-over-year basis as a result of increased supply.
Higher prices for dry and preserved foods in April 2020, when demand for non-perishable food products heightened as a result of public health measures, had a downward impact on the food price index in April 2021.