Statistics
Canada reported on Tuesday the country’s consumer price index (CPI) jumped
0.6 per cent m-o-m in March,
following an unrevised 0.3 per cent m-o-m gain in the previous month. This was
the strongest monthly rise in CPI since
July 2023 (+0.6 per cent m-o-m).
On a y-o-y
basis, however, Canada’s inflation rate showed a 2.9 per cent climb last month,
accelerating
slightly from an unrevised 2.8 per cent in February. This marked the first
rebound in the annual rate in three months and represented the lowest annual inflation rate since June 2023 (+2.8 per cent).
Economists had predicted
inflation would surge by 0.7 per cent m-o-m and 2.9 per cent y-o-y in March.
According to
the report, the monthly climb in the headline CPI reflected increases in 5
of all 8 major components, led by clothing and footwear (+2.8 per cent m-o-m)
and recreation, education and reading (+2.0 per cent m-o-m). In addition,
transportation (+1.5 per cent m-o-m) also saw a sharp increase, primarily
reflecting a soar in gasoline prices (+4.9 per cent m-o-m). These gains, however, were partly
offset by declines in household operations, furnishings and equipment (-0.3
per cent m-o-m), food (-0.2 per cent m-o-m), and health and personal care (-0.1
per cent m-o-m).
Meanwhile, the trimmed-mean
CPI – the preferred measure of core inflation of the Bank of Canada - increased
3.1 per cent y-o-y in March, following an unrevised 3.2 per cent y-o-y rise in February.
This marked the weakest annual rise since July 2021 (+3.1 per cent y-o-y). Economists had forecast an advance of 3.2 per cent y-o-y.