Canada's inflation rate is cooling off but Quebec just got more expensive

If your grocery bill hasn't dropped lately, there's a reason for that, especially if you live in Quebec.

According to new Consumer Price Index (CPI) data from Statistics Canada, Canada's inflation rate slowed to 1.7% in April, down from 2.3% in March. That national drop is mostly thanks to energy prices, which fell by 12.7% year over year, led by a massive 18.1% drop in gas prices. The removal of the federal carbon tax played a big role in that.

But don't celebrate just yet. Not everything got cheaper, and not everywhere.

Food prices are still rising, with groceries up 3.8% compared to last April. According to StatsCan, that includes price hikes on fresh vegetables (+3.7%), beef (+16.2%), coffee and tea (+13.4%), and sugar and candy (+8.6%). This marks the third straight month where grocery inflation outpaced the overall inflation rate.

Meanwhile, Quebec is once again going against the national trend. While most provinces saw inflation cool, Quebec's rate actually went up — from 1.9% in March to 2.2% in April. That makes Quebec the only province where inflation rose last month, and the second-highest rate in Canada after the Yukon.

The main reason? Quebec didn't benefit from the federal carbon tax cut like other provinces. Since it uses a cap-and-trade system, gas prices here only dropped by 12.1%. The federal policy change simply didn't apply, so Quebec drivers saw no real difference at the pump.

So while national inflation is slowing down, many Quebecers are still feeling the pressure, especially at the grocery store.

Curious about what shoppers are cutting back on? MTL Blog readers recently shared which everyday products have become too expensive to purchase. You can read about their responses here.

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