Canada Inflation

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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.

The Bank of Canada expects headline inflation to average 1.2% in 2015 and 2.0% in 2016, according to its January Monetary Policy Report. FocusEconomics Consensus Forecast panelists expect inflation to average 1.0% in 2015, which is down 0.2 percentage points from the previous month’s forecast. The panel expects inflation to average 2.1% in 2016.


Author:, Economist

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Canada Inflation Chart


Canada Inflation March 2015 2

Note: Year-on-year and month-on-month variation of seasonally adjusted consumer price index in %.
Source: Statistics Canada (SC).


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