Statistics Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.4 percent m-o-m in April, following a 0.7 percent m-o-m gain in the previous month.

On the y-o-y basis, Canada’s inflation rate increased 2.0 percent last month after a 1.9 percent gain in March. That was the highest inflation rate since December 2018.

Economists had predicted inflation would increase 0.4 percent m-o-m and 2.0 percent y-o-y in April.

According to the report, prices went up in seven of the eight major components in the 12 months to April. The shelter prices (+2.7 percent y-o-y) contributed the most to the April increase in the CPI, while prices for household operations, furnishings and equipment posted a decline (-0.1 percent y-o-y). Energy prices rose 0.7 percent y-o-y in April, recording the first 12-month gain since October 2018. Food prices surged 2.9 percent y-o-y last month, decelerating from a 3.6 percent y-o-y advance in March.

The closely watched the Bank of Canada's core index increased 1.5 percent y-o-y in April after gaining 1.6 percent y-o-y in the previous month. Economists had forecast an advance of 1.8 percent y-o-y.