ottawacanadian economic output slowed in april from the previous month as strong growth in the countrys commodity and hospitality sectors offset a marked decline in housing early estimates point to the economy contracting in may gross domestic product or the broadest measure of goods and services produced in the economy rose 03 monthovermonth in april to 2053 trillion canadian dollars or the equivalent of 1594 trillion statistics canada said thursday the april gain matched market expectations as provided by td securities on a oneyear basis gdp rose 50 the data agency said early indicators suggest gdp in may fell 02 the first visible sign that inflation and aggressive interestrate increases are weighing on economic activity statistics canada said advance information suggest the energy mining manufacturing and construction sectors declined in may the may gdp data are scheduled for release on july 29 economists have in recent weeks revised downward canadian growth prospects for the second half of 2022 and next year annual inflation in canada rose in may to a 39year high of 77 and analysts say the consumerprice index could surpass 8 in june as a result the bank of canada  which has a mandate to set policy to achieve and maintain 2 inflation  is widely expected to match the federal reserves 075point rate increase when it issues a decision on july 13 and then lift its policy rate toward or above 3 by the fall the policy rate began the year at 025 the interest rate increases have reverberated through canadas housing sector which last year accounted for onefifth of the countrys gdp growth canadian benchmark house prices have dropped for two straight months and sales activity has declined to prepandemic levels statistics canada said the realestate sector fell 08 in april or the largest decline in two years or the start of the covid19 pandemic excluding the pandemic the decline in real estate is the biggest since late 2008 or during the global financial crisis driving economic growth in april were commodities and the accommodation and food sector the component covering mining and energy extraction advanced 33 or the biggest gain in 16 months mostly due to oil and gas production the accommodation and food services sector expanded 46 in april up for a third consecutive month the data agency said activity at bars and restaurants  among the hardest hit due to publichealth restrictions  surpassed prepandemic levels in the month