Canada’s inflation rate falls to lowest level since August 2021

OTTAWA –

Canada’s annual inflation price fell to 4.3 per cent in March as increased mortgage curiosity prices have been offset by decrease power costs.

Statistics Canada reported Tuesday that inflation slowed from 5.2 per cent in February, persevering with alongside a downward trajectory that is anticipated to convey it down to 3 per cent by mid-year.

The continued slowdown in inflation since final summer time has now introduced the annual price right down to the bottom it has been since August 2021.

The slowdown comes as international costs pressures ease and excessive rates of interest weigh on the economic system.

But the deceleration hasn’t introduced a lot reduction to owners with new mortgages or renewing their mortgages at excessive rates of interest. Mortgage curiosity prices rose on the quickest tempo on document final month, up 26.4 per cent from a 12 months in the past.

Grocery costs are additionally nonetheless rising quickly, however at a slower tempo. Grocery costs have been up 9.7 per cent on a year-over-year foundation in March, down from 10.6 per cent in February. Statistics Canada mentioned the deceleration was pushed by decrease costs for vegatables and fruits.

The Bank of Canada’s most popular measures of core inflation, which it makes use of to look by means of volatility in costs, additionally trended downward in March.

Inflation in Canada is anticipated to proceed decelerating this 12 months however the Bank of Canada has mentioned it will not relaxation till inflation will get again to its two per cent goal.

The central financial institution has signalled rates of interest might have to remain increased for longer to get there.

According to its newest forecasts, the Bank of Canada is anticipating inflation to return to its two per cent goal by the tip of 2024.

Here’s what occurred within the provinces (earlier month in brackets):

• 
  Newfoundland and Labrador: 3.4 per cent (5.4)
• 
  Prince Edward Island: 3.9 per cent (6.7)
• 
  Nova Scotia: 4.6 per cent (6.5)
• 
  New Brunswick: 4.2 per cent (5.9)
• 
  Quebec: 4.7 per cent (5.6)
• 
  Ontario: 4.3 per cent (5.1)
• 
  Manitoba: 5.2 per cent (6.4)
• 
  Saskatchewan: 4.9 per cent (5.7)
• 
  Alberta: 3.3 per cent (3.6)
• 
  British Columbia: 4.7 per cent (6.2)

The company additionally launched charges for main cities, however cautioned that figures might have fluctuated broadly as a result of they’re primarily based on small statistical samples (earlier month in brackets):

• 
  St. John’s, N.L.: 3.6 per cent (5.5)
• 
  Charlottetown-Summerside: 4.2 per cent (7.4)
• 
  Halifax: 4.7 per cent (6.3)
• 
  Saint John, N.B.: 4.6 per cent (6.0)
• 
  Quebec City: 5.1 per cent (5.9)
• 
  Montreal: 5.4 per cent (6.3)
• 
  Ottawa: 4.8 per cent (5.4)
• 
  Toronto: 4.5 per cent (5.1)
• 
  Thunder Bay, Ont.: 4.3 per cent (4.4)
• 
  Winnipeg: 5.4 per cent (6.7)
• 
  Regina: 4.9 per cent (5.5)
• 
  Saskatoon: 5.3 per cent (6.2)
• 
  Edmonton: 2.6 per cent (2.7)
• 
  Calgary: 3.7 per cent (3.9)
• 
  Vancouver: 4.8 per cent (5.9)
• 
  Victoria: 5.1 per cent (6.0)
• 
  Whitehorse: 5.5 per cent (7.0)
• 
  Yellowknife: 4.6 per cent (5.8)
• 
  Iqaluit: 2.8 per cent (3.1)

This report by The Canadian Press was first revealed April 18, 2023