Canada’s inflation rate rises to 1.5 per cent in March

OTTAWA (NEWS1130) – Statistics Canada says the country’s annual inflation rate climbed four-tenths of a point to 1.5 per cent last month, as the cost of energy and gasoline rose significantly both on a year-to-year basis and over the previous month.

With energy prices rising 4.6 per cent from last March, including a 17.9 per cent jump in natural gas, economists had anticipated the increase in the consumer price index. As well, prices for electricity increased by five per cent, while fuel oil was 9.1 per cent higher.

On a month-to-month basis, average consumer prices rose 0.6 per cent, mostly due to a three per cent increase in gasoline.

Here in BC, the CP rose 0.1 per cent in March, compared to a 0.3 per cent drop in February. It marks the first year-over-year gain in the province since March, 2013.

Yesterday, Bank of Canada governor Stephen Poloz said he expects inflation to steadily climb to near the bank’s desired two per cent target over the next few months, but added that he believed the trend was mostly due to temporary factors, particularly energy.

For a clearer picture of underlying inflationary pressure, Poloz said he would pay more attention to the core index, which excludes volatile items and in March remained tame. It inched up just one-tenth of a point to 1.3 per cent.