The annual pace of inflation rose 4.4 per cent in April, marking the first increase since the rate peaked at 8.1 per cent in June of last year.
BMO senior economist Robert Kavcic says while the first big drop-down in inflation was quick and relatively easy, this next stage is proving to be quite a bit tougher.
He says it appears underlying core inflation is settling in around four per cent, which is clearly still too high for the Bank of Canada's comfort.