Consumer prices in Canada fell to 1.9 per cent in March from a year earlier following February’s 2.6 per cent increase, according to Statistics Canada. This is the lowest it’s been in one and one-half years.
On a year-over-year basis, growth in consumer prices slowed across the country and on most items, Statistics Canada said. Prices rose in only four of the eight major components.
The cost of food posted the most noticeable change. Compared to 12 months ago, the cost of food rose 2.2 per cent. The previous month, this sector posted a 4.1 per cent increase.
Transportation costs increased by 3.8 per cent in the 12 months to March, after gaining 4.2 per cent in February. In addition to gasoline, prices for passenger vehicle insurance premiums and for the purchase of passenger vehicles went up.
The cost of energy increased by 5.1 per cent in the 12 months to March, following a 7.2 per cent gain the previous month.
Consumer prices rose at a slower pace in every province in March with Ontario seeing the largest 12-month increase at 2.2 per cent, compared with 2.9 per cent in February. Manitoba recorded the smallest gains at 1.4 per cent.
The Bank of Canada’s core index — or inflation minus the most volatile elements, including energy, some fruits and vegetables, mortgage interest, and tobacco — increased by 1.9 per cent, down from February’s 2.3 per cent increase.
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