Canadian Consumer Price Index Increased 2.2% Year-Over-Year in March 2021

Statistics Canada (StatsCan) is reporting that the Consumer Price Index (CPI) for March rose 2.2% on a year-over-year basis, up from a 1.1% gain in February. As Canada marked the end of the first year of the COVID-19 pandemic, price growth in March 2021 was accentuated by what is known as base-year effects, originating in March 2020. The broad decline in prices in spring 2020, when headline CPI growth slowed to 0.9% in March 2020, had an upward impact on consumer inflation in March 2021. As the upward impact of these temporary base-year effects will influence the 12-month movement over the next few months, the historical movements affecting current growth trends will be examined. Excluding energy, the CPI rose 1.1% in March 2021 on a year-over-year basis. Year over year, consumer price growth increased within a context of rising consumer confidence and improving employment conditions as COVID-19 restrictions eased in many regions of the country. In March, prices rose in five of the eight major components year over year, with transportation (+7.1%) and shelter (+2.4%) prices contributing the most to CPI growth. Compared with March 2020, consumers paid less for clothing and footwear (-5.4%) and for household operations, furnishings and equipment (-0.2%). Gasoline prices led the increase in consumer energy prices, rising 35.3% year over year in March, the largest gain in gasoline prices since March 2000.


FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Original Source:
Consumer Price Index, March 2021 (final)