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Ottawa's Parliament Hill, where the Carney government is rolling out Canada's largest fiscal stimulus package since 1980. / Photo: Unsplash. MoneySavings.ca  ·  Economy & Policy Monday, April 13, 2026  ·  Daily Edition Canada at a crossroads: oil shock, frozen rates, and a trade deal on the clock Canada's economy is navigating a uniquely complicated moment in 2026. A Middle East conflict has sent oil prices surging past US$104 a barrel, a once-in-a-generation fiscal stimulus package is being rolled out in Ottawa, and the clock is ticking on a renegotiation of Canada's most important trade agreement. For everyday Canadians, this means uncertainty at the gas pump, a central bank with limited room to cut rates, and a federal government betting big on public spending to kick-start growth. Here is what you need to know about the forces shaping the Canadian economy right now. 1. The Bank of Canada is stuck — and oil is why The Bank of Canada has held it...
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Inflation Eases in May as Consumer Prices Rise at Slower Pace

 

A closely-watched report on U.S. inflation showed consumer prices cooled during the month of May, according to the latest data from the Bureau of Labor Statistics released Wednesday morning. Here are the key points:

  1. Consumer Price Index (CPI) Trends:

    • The CPI remained flat over the previous month.
    • Prices rose 3.3% over the prior year in May, which is a deceleration from April’s 0.3% month-over-month increase and 3.4% annual gain in prices.
    • Both measures beat economist expectations.

  2. Factors Contributing to the Slowdown:

    • A decline in energy prices, led by a drop in gas prices, contributed to further downward pressure on headline CPI.
    • On a “core” basis (excluding volatile food and gas costs), prices in May climbed 0.2% over the prior month and 3.4% over last year — cooler than April’s data.
    • Again, both core measures exceeded economist estimates.

  3. Federal Reserve Implications:

    • The inflation report arrives just ahead of the central bank’s policy decision at 2 p.m. ET.
    • Investors are closely watching this data point to shape future Federal Reserve interest rate policy.

In summary, while inflation remains a concern, the May data suggests a moderation in price increases. The Federal Reserve’s response will be crucial in navigating the economic landscape.


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