Bank of Canada Governor Mark Carney.Sean Kilpatrick
The April CPI report was released this morning; the headline year-over-year inflation rate was 3.3 per cent. This is above the Bank of Canada's target, but for reasons explained here, the Bank considers the 'core' rate of inflation as a more reliable predictor of trends in inflation. The year-over-year core inflation rate was only 1.6 per cent, but if you look at inflation rates over shorter horizons, it looks as though the trend in core inflation is upwards to the 2 per cent target and beyond. Average core inflation over the last three and over the last four months has been above 2 per cent for a couple of months now.
I don't see why anyone would view this report as a signal reinforcing the view that the Bank of Canada should or will continue to hold interest rates constant on May 31.