Canadian Consumer Price Index Inches Higher in March

On Tuesday, Statistics Canada (StatCan) reported that in March the Canadian Consumer Price Index (CPI) increased 2.9% year-over-year. This follows a 2.8% gain in February. On a monthly basis, the CPI rose 0.6% in March, with broad-based price growth.

According to StatCan, gasoline prices was the major contributor to the year-over-year headline acceleration, as prices at the pump rose faster in March compared to February. Excluding gasoline, the all-items CPI slowed to a 2.8% year-over-year increase—down from a 2.9% gain in February.

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.

Also contributing to the increase in the CPI was a 4.5% increase for services in March, up from February’s increase of 4.2%. Services costs were driven by air transportation and rent, outpacing price growth for goods, up 1.1%, which slowed when compared to February, up 1.2%, on a yearly basis.