Gas Price Surge Drives April Gain in Consumer Spending
Index of Consumer Spending
Canada’s Index of Consumer Spending stood at 121.2 in April 2026, a gain of 11.0 points from March (April 2022 = 100).
- Elevated fuel prices resulting from the disruptions to the Strait of Hormuz remained the dominant driver of the April result, lifting the Index of Consumer Spending (ICS) for a second consecutive month. Statistics Canada’s Consumer Price Index recorded gasoline prices rising 28.6 per cent year-over-year in April, with overall energy prices up 19.2 per cent (non‑seasonally adjusted), as supply uncertainty from the conflict in the Middle East and the switch to more expensive summer blends pushed pump prices higher. The temporary suspension of the federal fuel excise tax, effective April 20 and worth up to 10 cents per litre on regular gasoline, reduced what consumers paid at the pump later in the month and tempered the increase. Consumers paid more per litre on every fill through most of April, raising the recorded dollar value of fuel transactions and adding direct nominal upward pressure to the index. The ICS stood 4.1 points above April 2025.
- Statistics Canada’s retail trade data for April showed the same price-driven pattern, where retail sales rose 0.5 per cent in dollar terms but were unchanged in volume terms. Receipts at gasoline stations and fuel vendors rose 5.1 per cent, while retail sales excluding autos and gasoline fell 0.7 per cent, a second consecutive monthly decline. Households directed more dollars to fuel while the underlying volume of goods purchased was flat, indicating that April’s ICS gain was possibly more price driven rather than volume driven.
- Within non‑fuel categories, sales at food and beverage retailers fell 2.0 per cent in April and general merchandise retailers declined 1.7 per cent, while sales for motor vehicle and parts dealers rose 1.7 per cent, a fourth consecutive monthly gain led by new car dealers. Households cut back on non-essential grocery and general merchandise purchases as fuel took a larger share of spending, with vehicles the main non‑fuel category still adding support.
- In its April 29 announcement, the Bank of Canada held the overnight rate at 2.25 per cent, stating that it is looking through the war’s immediate impact on inflation but will not let higher energy prices become persistent inflation. Statistics Canada’s Consumer Price Index rose 2.8 per cent year-over-year in April, up from 2.4 per cent in March, with gasoline driving the acceleration. Excluding gasoline, the CPI rose 2.0 per cent.
- All 10 Canadian provinces posted ICS gains. Prince Edward Island led with an increase of 22.2 points to 130.4. Nova Scotia rose 14.4 points to 136.1, and Ontario expanded 14.0 points to 117.5. Each of these three gains were above the national mark. Statistics Canada’s Labour Force Survey recorded employment in Ontario rising by 42,000 in April, supporting household income in Canada’s most populous province.
- Year-over-year, Nova Scotia’s ICS gain of 8.6 points was the largest among provinces, while Prince Edward Island stood 3.9 points above April 2025. Each of these year-over-year gains were below the national increase of 4.1 points, however, indicating that most of the monthly rise reflected usual spring patterns in the non-seasonally adjusted data. According to Statistics Canada, gasoline also accounts for a higher share of household spending in Atlantic Canada, amplifying the fuel price effect on recorded transaction values in the region.
- Among Canada’s three territories, the Northwest Territories recorded the only decline, down 2.0 points to 127.6. Nunavut posted a modest gain, up 1.2 points to 107.4, while Yukon rose 6.8 points to 128.9.
- Employment fell by 18,000 jobs nationally in April, and the unemployment rate rose 0.2 percentage points to 6.9 per cent as 51,000 more people searched for work. The youth unemployment rate increased to 14.3 per cent. Weak hiring conditions continued to constrain growth in employment income available to households for spending.
Disruptions to the Strait of Hormuz remained the dominant driver of the April result.
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The Index of Consumer Spending is powered by exclusive consumer transaction data provided by Moneris Data Services. Moneris is Canada’s number one payment processor with over 3.5 billion transactions spanning more than 325,000 merchant locations. Our index tracks incremental changes in net transaction volume month-over-month from a set starting point (April 2022 = 100), enabling us to gauge economic activity levels across the country and provide insights into how the Canadian economy is performing coast to coast.
Updates on this index will be released monthly.
The Index of Consumer Spending’s (ICS) methodology has been revised for releases from January 2024 onwards. The ICS no longer tracks the weekly year-on-year changes in consumer spending. Instead, the ICS now tracks the incremental changes in net transaction volume month-over-month, from a set starting point (April 2022 = 100).
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