The Daily Canuck 20.05.2026

Research evidence excerpt

The Daily Canuck 20.05.2026

Financials

Equity Research

May 20, 2026

Macroeconomic/Global

Inflation rises to 2.8% in April but Iran war impact limited to gas pumps for now (The Canadian

Press) Yesterday, The Canadian Press reported that Canada’s inflation rate rose to 2.8% in April, the

highest since May 2024, up from 2.4% in March but slightly below economists’ expectations of above

3%. Statistics Canada said higher gasoline prices were the main driver, with gas up 28.6% y/y as the

war in Iran disrupted global oil shipments and as Canada switched to more expensive summer fuel

blends. Energy prices overall rose 19% y/y. The annual comparison was also pushed higher because

the federal consumer carbon price was removed in April 2025, eliminating a prior downward effect on

inflation. A mid-month pause in the federal fuel excise tax helped limit April’s increase and will remain

in place until Labour Day. Rising energy costs were partly offset by an 11% y/y drop in travel tour prices

and easing rent inflation, particularly in British Columbia, which was the only province not to see faster

inflation. Food inflation slowed to 3.5% from 4% in March, though economists warned higher energy

and fertilizer costs could lift food prices over time. Core inflation measures cooled, suggesting limited

spillover beyond energy so far. The data are the final inflation reading before the Bank of Canada’s

June 10 rate decision, with analysts broadly seeing little pressure for near-term rate hikes.

Canada’s wealth fund is not aimed at lowering investors’ taxes, Champagne says (Bloomberg News)

Yesterday, Bloomberg News reported that Canada’s planned sovereign wealth fund is intended to

give citizens a way to participate in major nation-building projects rather than reduce their personal