Canada’s inflation rate last month was 4.3 per cent, the lowest since August 2021.
Statistics Canada’s Consumer Price Index report for March said the rising cost of energy, food, and durable goods slowed last month.
However, homeowners paid significantly more interest on a mortgage. Those costs rose 26.4 per cent more, marking the greatest yearly increase on record. That rate increase was 23.9 per cent in February.
Last week, the Bank of Canada announced it was leaving its key lending rate at 4.5 per cent following eight consecutive increases since April 2020. It will provide another update on June 7.
Excluding interest on mortgage rates, the inflation rate was 3.6 per cent.
The cost of groceries continued to rise, but not as quickly. Overall, a trip to the grocery store cost 9.7 per cent more than it did a year ago, following February’s increase of 10.6 per cent.
The price of fresh fruit rose 7.1 per cent compared to 10.5 per cent the month before, while buying fresh vegetables cost consumers another 10.8 per cent, compared to 13.4 per cent in February.
A trip to the gas pumps wasn’t quite as painful. A year ago, gas prices sharply rose in the aftermath of the Russian invasion of Ukraine and the resulting uncertainty about the global availability of oil. Compared to March 2022, gas prices dropped 13.8 per cent, the second consecutive drop in those costs and the most significant year-over-year decline since July 2020.
Compared to the rest of the G7 nations, Canada had the second lowest inflation rate, second only to Japan’s 3.8 per cent. Italy had the highest inflation at 7.6 per cent in March. Germany’s rate was 7.4 per cent. It was 7 per cent in the United Kingdom and 5.6 per cent in France. The U.S. reported 5 per cent inflation last month.
The Consumer Price Index report for April comes out on May 16.
