StatCan shared that the cost of gasoline was 28.6% higher year-over-year last month in April. This increase was caused by the conflict in the Middle East, which disrupted global shipments and led to surging costs at gas pumps. April also witnessed the switch to more costly summer gasoline blends at gas stations throughout Canada.
Higher gas prices, driven mainly by the Middle Eastern conflict, have pushed the annual rate of inflation up to 2.8% in April, Statistics Canada disclosed on Tuesday, 19 May ’26. This is considered the fastest rate of price hikes in almost two years.
StanCan added that the cost of gasoline was 28.6% higher year-over-year last month as conflict in the Middle East disrupted global crude oil movements. It resulted in surging costs at the gas pumps. April also marked the usual switch to more expensive summer gasoline blends at Canadian gas stations.
The StanCan agency also noted that the federal government’s decision to suspend the fuel excise tax mid-month helped moderate the April price increase to some extent.
StanCan’s April report reflects a jump from March’s inflation rate of 2.4%, though a Reuters poll of economists had expected inflation to accelerate even more to top 3%. The April figures mark the highest annual inflation rate since nearly 2 years ago in May ’24.
Meanwhile, Ottawa’s decision to remove the consumer carbon price a year earlier skewed the annual price comparison higher in April ’26.
Nixing the carbon price reduced roughly 18 cents from the price of a litre of gas in April ’25. This action has contributed to a decrease in the headline inflation rate over the past 12 months. However, those reductions are no longer included in the annual comparison. It pushed inflation higher rather than depressing it.
Prices of clothing, besides footwear, rose 2% in April. The increase was coming off a decline of 0.4% during March ’26.
