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Canada Inflation Rate Declines in March, Driven by Lower Travel and Gasoline Costs
OTTAWA – Canada’s annual inflation rate receded to 2.3% in March, according to figures released by Statistics Canada on Tuesday. This deceleration in the cost of living was largely attributed to a drop in prices for travel tours and gasoline at the pump. Market analysts had projected the annual inflation rate would remain steady at February’s 2.6%.
Key Inflation Indicators
The latest data reveals the following percentage changes:
- CPI – all items: Month-on-month +0.3% (previously +1.1%), Year-on-year +2.3% (previously +2.6%)
- CPI – common: Year-on-year +2.3% (previously +2.5%)
- CPI – median: Year-on-year +2.9% (unchanged from previous)
- CPI – trim: Year-on-year +2.8% (previously +2.9%)
- Bank of Canada core: Month-on-month +0.1% (previously +0.7%), Year-on-year +2.2% (previously +2.7%)
- All items ex food/energy: Month-on-month +0.2% (previously +0.9%), Year-on-year +2.4% (previously +2.9%)
- Goods: Month-on-month +0.3% (previously +0.8%), Year-on-year +1.3% (previously +1.5%)
- Services: Month-on-month +0.3% (previously +1.2%), Year-on-year +3.1% (previously +3.6%)
- Energy: Month-on-month -1.2% (previously +0.5%), Year-on-year -0.3% (previously +3.0%)
Seasonally Adjusted Figures
On a seasonally adjusted basis:
- All items: Month-on-month 0.0% (previously +0.6%)
- Core CPI, SA: Month-on-month -0.2% (previously +0.4%)
Analyst Expectations
It is important to note that a Reuters survey of analysts had anticipated the March Consumer Price Index (CPI) to hold at an annualized rate of 2.6%, and to show a monthly increase of 0.6%.