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

VIDEO: Repaved stretch of Hwy. 19A dangerous, Campbell River cyclist says

Mayor says city could do better job at consulting with cyclists and other residents

Campbell River-area residents on the hook following fisheries violations

DFO announces convictions related to sea urchin, prawn fisheries

Campbell River arena first to switch to carbon dioxide from ammonia

Work to decommission refrigeration system at Strathcona Gardens now underway

Fraser Valley man dead after car hurtles from embankment west of Campbell River

Survivor of crash rushed to hospital by helicopter in serious condition

Sixteen registered for Indigenous kindergarten program in Campbell River

Program uses four seasons model and incorporates wildlife wisdom and cultural activities

600 new campsites coming to provincial parks and recreation sites across B.C.

Tourism Minister announced half of the new spots to 13 most popular provincial parks

Raptors beat Bucks 105-99 to move within 1 game of NBA Finals

Leonard scores 35 as Toronto takes 3-2 series lead over Milwaukee

B.C. Supreme Court dismisses review around ferry workers’ right to strike

B.C. Ferry and Marine Workers’ Union collective agreement expires November 2020

Municipalities protest after B.C. declares marijuana crops ‘farm use’

UBCM president seeks answers in letter to John Horgan government

CMHC defends mortgage stress test changes amid calls for loosening rules

Uninsured borrowers must now show they could service their mortgage if rates rose two per cent

B.C. woman left ‘black and blue’ after being pushed off 40-foot cliff at lake

West Shore RCMP looking for witnesses as investigation continues

Cystic Fibrosis Walk Sunday in Campbell River

Help make CF history, for Maysa’s sake

Thunderstorms to bring heavy rain, risk of flash floods in the southern Interior

Ten to 30 millimetres of rain to fall over the early weekend

Unbe-leaf-able: Agassiz man finds more than 200 four-leaf clovers in a month

Walt Hardinge has found more than 219 four-or-more leaf clovers this spring alone

Most Read