Canada's Annual Consumer Inflation At 2.9% In March, Up From 2.8% Gain In February

Canada's consumer inflation annually came in at 2.9% in March, up from a 2.8% year-on-year gain in February, the country's statistical authority said Tuesday.

The figure, however, reflects a significant slowdown since the 8.1% annual gain recorded in June 2022 — its highest level in 39 years.

"Gasoline prices contributed the most to the year-over-year headline acceleration, as prices at the pump rose faster in March compared with February," Statistics Canada said in a statement.

"Shelter prices continued to apply upward pressure in March, with the mortgage interest cost and rent indexes contributing the most to the year-over-year gain in the all-items CPI," it added.

Statistics Canada said shelter prices increased 6.5% year-on-year in March, rising at the same rate as in February.

"The mortgage interest cost index rose 25.4% on a year-over-year basis in March, following a 26.3% increase in February," it said. Rent prices continued to climb in March, rising 8.5% year over year, following an 8.2% increase in February."

Gasoline prices annually increased 4.5% in March, following a 0.8% year-on-year gain in February, according to the agency.

"Higher global prices for crude oil stemmed from supply concerns amid geopolitical conflict and continued voluntary production cuts, leading to higher prices at the pump," said the statement.

On a monthly basis, the consumer price index was at 0.6% in March, following a monthly gain of 0.3% in February. -