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

Alberta’s 47 legislature newbies meet under the dome for orientation day

Most new members are with the United Conservatives, who won a majority government

Bashaw Rebels tackle a new challenge in handball

Unique, physical sport seems to be good spring fit for school

Bashaw’s 2019 budget will see further adjustments

Preliminary look at town revenue and expense projections will need tweaks before approval

Bashaw’s Razzle Dazzle Day plans under construction

Annual Chamber sponsored community celebration set for June 8

Kenney talks pipelines with Trudeau after election win, calls it cordial

Almost a year ago Kenney dismissed Trudeau as a dilettante and a lightweight

VIDEO: Police dog in Oregon struck by 200 porcupine quills during pursuit

The German shepherd had to be sedated and was in treatment for more than two hours

Calgary woman killed in B.C. highway crash

Crash closed highway for hours

Assessment says Alberta woman facing animal abuse charges fit to stand trial

April Dawn Irving, 59, is charged with 13 counts of cruelty to animals

Canadian privacy watchdogs find major shortcomings in Facebook probe

The probe followed reports that Facebook had let an outside organization use an app to access users’ personal info

Provinces, Ottawa talk 50/50 split on abandoned bus-route service

B.C. has paid $2 million on a bus service for the northern part of the province

Wilson-Raybould: Feds want to just ‘manage the problem’ of Indigenous Peoples

Former federal justice minister speaks at First Nations Justice Council meeting in B.C.

Oil and gas company confirms death of one of its employees in Yoho avalanche

Dana Coffield died when he was skiing in the Rocky Mountains

Cenovus CEO estimates production curtailments will deliver billions to taxpayers

The curtailment program started Jan. 1 was designed to keep 325,000 barrels per day off the market

Robbery in Leduc County estimated at $40,000

Leduc RCMP investigate break and enter and theft of firearms

Most Read