Canada: Inflation eases in March
April 22, 2016
In March, seasonally-adjusted consumer prices recorded a 0.2% increase over the previous month, which contrasted February’s 0.2% decrease and marked the highest figure in nine months. According to Statistics Canada, all components of the index increased over the previous month, with the largest rise being for the prices for clothing and footwear.
Inflation was 1.3% in March, down from 1.4% in February. March’s result was slightly above the 1.2% expected by the markets. Despite the decrease, inflation is still within the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in March mirrored February’s tally of 1.2%. Core inflation, which excludes volatile items such as gasoline and fresh food, increased from 1.9% in February to 2.1% in March.
Author: Robert Hill, Economist