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

City of Lacombe installs new skating rink at LMC

Lacombe residents can now skate among the LMC Christmas lights

Cops, Pops and Pizza in Lacombe raises $1,700 for Special Olympics Alberta

Annual event part of national Law Enforcement Torch Run campaign

Blackfalds RCMP officer’s firearm discharged in struggle

Red Deer and Sylvan Lake RCMP assist after police vehicle stolen

Lacombe Ram Zach Schwab wins City Offensive Player of the Year

Wide receiver hoping to play football at the next level

WATCH: CP Holiday Train supports Lacombe Food Bank

Madeline Merlo and JUNO Award nominee Scott Helman both performed

AHS: Albertans reminded to be food safe this holiday season

Important to wash your hands often and prepare foods properly to reduce risk of food-borne illness

Two adults, two youths from Maskwacis charged in ATV, gun theft

Wetaskiwin RCMP Investigate Break, Enter & Theft and Weapons Offences - Arrests

Indigenous mother wins $20,000 racial discrimination case against Vancouver police

Vancouver Police Board ordered to pay $20,000 and create Indigenous-sensitivity training

‘He was good for the West:’ Sadness, surprise in Saskatchewan over Scheer

Saskatchewan Premier Scott Moe and his predecessor, Brad Wall, both thanked Andrew Scheer

Johnson claims Brexit mandate with new conservative majority

Conservative Party wins 365 seats in the House of Commons

Couple who bought $120k banana duct-taped to wall say artwork will be ‘iconic’

Pair compared it to Warhol’s ‘Campbell’s Soup Cans,’ which was initially ‘met with mockery’

Alberta to change drug coverage for 26,000 patients, expects to save up to $380M

Patients being treated with biologics on government-sponsored drug plans must switch to biosimilars

Race to replace Andrew Scheer could be a crowded one

Many familiar faces, such as Maxime Bernier, Jason Kenney, Doug Ford and Kevin O’Leary, have said no

Most Read