Consumer prices fell in several segments of the Canadian economy in April. They included transportation, clothing and footwear, recreation, and education. Gasoline and clothing both experienced the largest decline in the history for those components on record. Statistics Canada (Stat Can) data shows the consumer price index (CPI) fell in April.
Deflation is when consumer prices fall. That is a good thing. After all, who does not want to pay less for things? Declines at certain times, especially if due to decreasing manufacturing costs, can be terrific. Consumers have more money they can spend or invest.
While the Bank of Canada does not want to see sustained deflation (see link for more information about why), they do not deem small price declines over short periods of time to be a problem.
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