Statistics Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.5 percent m-o-m in April, the same pace as in the previous month.

On the y-o-y basis, Canada’s inflation rate surged 3.4 percent last month after climbing 2.2 percent in March. This was the highest inflation rate since May 2011.

Economists had predicted inflation would increase 0.4 percent m-o-m and 3.2 percent y-o-y in April.

According to the report, a significant proportion of April’s year-over-year increase was attributable to a sharp drop in prices in April 2020, triggered by the COVID-19 pandemic.

Compared with April 2020, prices rose in all eight major components, with transportation (+9.4 percent y-o-y) and shelter (+3.2 percent y-o-y) prices contributing the most to CPI growth.

Meanwhile, the closely watched the Bank of Canada's core index jumped 2.3 percent y-o-y in April, following a 1.4 percent y-o-y advance in March.