The Consumer Price Index (CPI) rose 2.3% year over year in March, following an increase of 2.6% in February, according to a report released Tuesday by Statistics Canada.
The year-over-year slowdown in the all-items CPI was driven by lower prices for travel tours and gasoline in March. Excluding gasoline, the CPI rose 2.5% following a 2.6% increase (excluding gasoline) in February, said the federal agency.
Moderating the slowdown was the end of the temporary break on the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) on February 15, which put upward pressure on prices for eligible products in March compared with February, it added.
On a monthly basis, the CPI rose 0.3% in March. On a seasonally adjusted monthly basis, the CPI was unchanged.
“With the end of the federal tax break on February 15, March was the first full month with GST/HST re-applied to the affected products since November 2024, resulting in upward price pressure,” explained Statistics Canada.
“Prices for food purchased from restaurants moderated the slowdown in headline inflation, rising 3.2% year over year in March after a 1.4% decline in February.
“Year over year, consumers paid 1.6% less at the pump in March following a 5.1% increase in February. The decline was largely a result of lower crude oil prices amid concerns of slowing global oil demand and slowing economic growth related to the threat of tariffs. Additionally, the Organization of the Petroleum Exporting Countries and its partners (OPEC+) confirmed a planned increase to production.”
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