Canadian Consumer Price Index Posts Smallest Increase Since August 2021

Statistics Canada (StatCan) reported Tuesday (4-18-23) that the Canadian Consumer Price Index (CPI) rose 4.3% year-over-year in March, following a 5.2% increase in February. This was the smallest increase since August 2021 when it was 4.1%. On a year-over-year basis, Canadians paid more in mortgage interest costs, which was offset by a decline in energy prices.

Excluding food and energy, prices were up 4.5% year-over-year in March, following a 4.8% gain in February. The all-items CPI, excluding mortgage interest costs, rose 3.6% after increasing 4.7% in February.

On a monthly basis, the CPI was up 0.5% in March, following a 0.4% gain in February. StatCan notes that travel tours—up 36.7%—contributed the most to month-over-month movement, largely driven by an increased seasonal demand during the March break. On a seasonally adjusted monthly basis, the CPI rose 0.1%.

While headline inflation has slowed in recent months, having increased 1.7% in March compared with 6 months ago, prices remain elevated. Compared with 18 months ago, for example, inflation has increased 8.7%.