OTTAWA – Statistics Canada reported on Tuesday that the annual inflation rate in March saw a slight increase compared to February, driven by higher gasoline prices, which rose by 4.5 percent compared to the previous year, partially influenced by a global uptick in oil prices.
The Consumer Price Index (CPI) for March showed a 2.9 percent increase compared to the same period last year, up from a 2.8 percent year-over-year rise in February.
Excluding the impact of gasoline, the overall annual inflation rate for March was 2.8 percent, a slight decrease from the 2.9 percent recorded in February.
Despite the overall increase in inflation, Statistics Canada noted that the Bank of Canada’s three core measures for inflation in March all moved lower compared to February.
The Bank of Canada, which maintained its key interest rate target at five percent in its recent announcement, hinted at the possibility of a rate cut at its next scheduled announcement in June, stating that it was “within the realm of possibilities.”
The central bank is closely monitoring signs of sustained easing in underlying inflation, as indicated by Statistics Canada’s report highlighting a 6.5 percent increase in shelter prices compared to a year ago.
Mortgage interest costs saw a significant rise of 25.4 percent year-over-year in March, while rent prices increased by 8.5 percent.
Food prices experienced a 3.0 percent increase compared to a year ago, while prices for clothing and footwear decreased by 2.7 percent. Additionally, prices for household operations, furnishings, and equipment dropped by 2.3 percent.