Produce is shown in a grocery store in Toronto on Friday, Nov. 30, 2018. An annual report estimates the average Canadian family will pay about $400 more for groceries and roughly $150 more for dining out next year. THE CANADIAN PRESS/Nathan Denette

Inflation rises 1.9% on higher prices for fresh vegetables, mortgage costs

Year-over-year gas prices dropped 4.4 per cent last month across the country

Canada’s annual inflation was up last month as price pressures strengthened for fresh vegetables, mortgage interest costs and auto insurance.

Statistics Canada said Wednesday that the country’s consumer price index increased 1.9 per cent in March, in line with economists’ expectations. It was higher than its readings of 1.5 per cent for February and 1.4 per cent in January, when inflation number was at a 15-month low point.

The agency’s core inflation readings, which are considered better measures of price pressures, rose two per cent in March — up from 1.9 per cent in February. They omit more-volatile items like gasoline and are closely watched by the Bank of Canada.

The firmer inflation picture brings both gauges closer to the central bank’s ideal two per cent target, and comes as the economy works through a soft patch brought on by the drop in crude-oil prices at the end of last year.

Compared with a year earlier, Statistics Canada said consumers paid 15.7 per cent more in March for fresh vegetables, 8.1 per cent more on mortgage borrowing costs and 5.6 per cent more for car insurance.

Year-over-year gas prices dropped 4.4 per cent last month, internet costs dropped 9.2 per cent and travel tours moved down 6.4 per cent.

Higher pump prices were a major driver of inflation last year before lower gas prices weighed on the measure in recent months.

In March, however, the downward pressure from cheaper gas eased off as global oil prices climbed, Statistics Canada said.

READ MORE: B.C. cities break North American gas price record

READ MORE: British Columbians are paying more for booze but also broccoli

Inflation accelerated in every province last month, with Alberta, New Brunswick and Prince Edward Island registering the strongest price growth.

The economy abruptly decelerated in the final three months of 2018. Bank of Canada governor Stephen Poloz has predicted the weakness to be temporary and for the economy to strengthen in the second half of 2019.

The central bank, which has hiked its key interest rate five times since mid-2017, will make a policy announcement next Wednesday. It’s widely expected to leave the benchmark unchanged.

In a separate report Wednesday, the agency said Canada’s trade deficit was $2.9 billion in February — which contributed to the country’s biggest three-month shortfall on record.

The February number followed revised trade deficits of $3.1 billion in January and $4.8 billion in December.

Exports were down 1.3 per cent in February, while imports declined 1.6 per cent.

Andy Blatchford, The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Sylvan Lake woman recounts her experience trekking Mt. Everest

Perle Campbell and her daughter travelled to Nepal in May to hike to base camp on Mt. Everest

Sylvan Lake Midget Buccaneers secure playoff spot

The Midget Buccs defeated the Didsbury Chargers 11-6 on June 15 to close out regular season play

AMBER ALERT: Alert cancelled after child located safe and unharmed

Alert cancelled after child located safe and unharmed

Sylvan Lake Yettis clinch league’s top spot

The Yettis have a first round bye and will play the second round of playoffs on home court, July 5-7

MP Blaine Calkins tables rural crime bill

Bill C-458 was tabled Friday, and proposes to amend the Criminal Code to account for rural residents

VIDEO: ‘Avengers: Endgame’ to be re-released with new footage

‘Avatar’ holds global box office record at $2.788 billion, while ‘Endgame’ stands at $2.743 billion…

VIDEO: Acknowledging skeptics, finance minister vows to build Trans Mountain project

Bill Morneau said he recognizes ‘huge amount of anxiety’ in Calgary over future of oil and gas sector

Shovels could be in the ground on Trans Mountain by September, CEO says

Ian Anderson points to weeks likely required for NEB to reinstate 2016 regulatory record

Calgary man facing charges after B.C. police service dog aids in arrest

Heavy police presence results in PSD Jagger finding suspect

RCMP allows officers to grow beards

Members can now wear beards and goatees, as long as they’re neatly groomed

Wildfires have forced more than 9,000 people from homes in northern Alberta

People in other communities remain on evacuation alert and could be told to leave quickly

Pride divided: Edmonton leadership under pressure as LGBTQ community looks to future

Most of the conflict can be traced back to 2016 Toronto Pride when Black Lives Matter staged a protest

Federal cabinet ministers visit Edmonton, Calgary, in wake of TMX approval

Natural Resources Minister Amarjeet Sohi is set to visit Trans Mountain Corp.’s terminal in Edmonton

Statistics Canada reports annual pace of inflation rises in May to 2.4%

Transportation prices gained 3.1 per cent as the cost of air transportation added 8.9 per cent

Most Read