The surprising reason B.C.'s inflation rate is the lowest in all of Canada
While B.C. might be known as having one of the highest costs of living in Canada, this trend took a surprising turn last month, according to recent numbers from Statistics Canada.
Earlier today, Statistics Canada released its consumer price index for April 2026, showing that Canada’s inflation had increased by 2.8 per cent year-over-year — meaning that things were nearly three per cent more expensive than they were in April 2025.
The main culprit for the increase was energy prices, which increased by 19.2 per cent year-over-year. Gas prices in particular shot up, increasing by a whopping 28.6 per cent year-over-year.
The Middle East conflict has created “supply uncertainty,” according to StatCan. Suppliers are also switching to a more expensive blend of summer fuel.
Further, in April 2025, the federal government removed the consumer carbon tax. While this move caused a steep monthly decline that month, it made the annual price comparison look higher in April 2026.
However, the cost of gas increase was moderated by the federal government’s temporary suspension of the federal fuel excise tax, put in place on April 20.
But what happened in B.C.?
While B.C. certainly experienced high gas prices in April, it was actually the only province where price growth did not accelerate year-over-year. In fact, B.C.’s year-over-year inflation last month was the lowest in the entire country.
Prices still went up by 2.5 per cent year-over-year in April, but it was the same rate that the province experienced in March. Whereas Canada-wide, prices went up 2.8 per cent year-over-year in April, up from an increase of 2.4 per cent year-over-year in March.
Statistics Canada pointed out that rent price growth slowed the most in B.C., rising 3.4 per cent in April, down from 6.4 per cent in March. It added that B.C.’s population has declined for four consecutive quarters, which many experts say is the reason that vacancy rates have risen.
In 2025, B.C.’s population dropped by 41,000 people, due to the federal government’s policy shift to reduce the number of non-permanent residents in Canada, especially international students and temporary workers. Non-permanent residents tend to make up a large share of renters, and as their numbers decline, vacancy rates are rising.
Statistics Canada/Supplied
Nationwide, prices for rents rose at a slower pace year-over-year in April (a 3.6 per cent increase) compared to March (4.2 per cent).
What was the core inflation rate?
If volatile items like energy and food are stripped away, Canada’s core inflation rate actually went down slightly from the month before — it was at 2.1 per cent year-over-year in April, down from 2.3 per cent year-over-year in March.
“As expected, higher oil prices lifted Canadian inflation in April, but we are not yet seeing much of a knock-on effect to non-energy related goods or services,” reads commentary from TD on the latest CPI numbers.