Canada: Inflation increases in March
April 17, 2015
In March, consumer prices rose a seasonally-adjusted 0.4% over the previous month, which was greater than February’s 0.2% increase and represented the highest growth since February 2013. According to Statistics Canada, six of the eight components of the index increased.
Annual headline inflation rose from February’s reading of 1.0% to 1.2% in March, reaching the highest level in three months and beating market expectations by 0.2%. As a result, inflation has moved back within the target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in March came in at 1.8%, which was slightly below February’s reading of 1.9%. Annual core inflation, which excludes volatile items such as gasoline and fresh food, jumped from 2.1% in February to 2.4% in March, thus marking the highest level since November 2008.
Author: Robert Hill, Economist