Canada’s inflation rate declined to an annualized 2.3% in March due largely to lower prices for gasoline at the pumps.
Statistics Canada reports that the Consumer Price Index (CPI) dropped to 2.3% year-over-year in March from 2.6% in February of this year.
The year-over-year decline was driven largely by a steady drop in gasoline prices that consumers pay at the pumps.
Crude oil prices have been sliding lower since U.S. President Donald Trump’s inauguration in January of this year as a weakening global economy hurts energy demand.
Brent crude oil, the international standard, is currently trading at $64.42 U.S. per barrel, down from more than $80 U.S. a barrel at the start of this year.
Excluding gasoline, Canada’s inflation rate in March stood at an annualized rate of 2.5%, down slightly from 2.6% in February.
Partially offsetting the decline in gas prices was the end of the temporary break on the Goods and Services Tax (GST) on Feb. 15, which put upward pressure on consumer prices.
On a monthly basis, inflation across Canada rose 0.3% in March and was unchanged on a seasonally adjusted basis.
Beyond lower gas prices, Canadians got a break on prices for travel tours, which fell 4.7% in March after an 18.8% increase in February during the peak of winter travel to sun destinations.
On a month-over-month basis, prices for travel tours fell 8% in March following a 23% increase in February. Air transportation prices fell 12% year-over-year during March.
Prices for cellular services declined 8.8% on a year-over-year basis in March due to lower prices for cellular plans and industry-wide promotions.
Across the country, inflation rose at a slower pace in eight provinces during March compared with February.
Nova Scotia (up 2.3%) was the only province with accelerating price increases due largely to higher shelter costs, which rose 4.8% from a year earlier.
