Canada CPI in March Higher on Energy, Food Prices, But The Advance Is Less Than Expected
The Canadian consumer price index increased 2.4% year over year in March, up from an increase of 1.8% year over year in February, said the country's statistical agency on Monday.March's CPI was lower than the 2.6% year-over-year consensus figure provided by Scotiabank.Driving faster price growth in headline inflation were higher prices for energy, especially gasoline, due to the conflict in the Middle East, noted Statistics Canada in a statement. Excluding gasoline, the CPI rose at a slower pace year over year in March of 2.2% compared with February's 2.4%.The CPI was up 0.9% month over month in March on a non-seasonally adjusted basis, added StatsCan. On a seasonally adjusted monthly basis, the CPI increased 0.5% month over month.Energy prices rose 3.9% on a year-over-year basis in March, after decreasing 9.3% in February. On a monthly basis, energy prices rose 13.1% in March.Higher prices for gasoline were the primary driver of the year-over-year acceleration in the CPI, as consumers paid 5.9% more for gasoline in March than they did in the same month the previous year. Prices surged 21.2% on a monthly basis, the largest price increase for gasoline on record, due to the supply shock resulting from the conflict in the Middle East, added the Ottawa-based agency.However, this monthly effect was muted on a year-over-year basis due to the comparison with prices from March 2025, which included the since-removed consumer carbon levy. The removal of the consumer carbon levy will no longer impact the 12-month movement as of April 2026, and this will be reflected in next month's CPI release.Prices for food purchased from stores rose 4.4% on a yearly basis in March, after increasing 4.1% in February.On a year-over-year basis, prices for fresh vegetables increased 7.8% in March, the largest increase since August 2023 (+8.7%), after rising 0.5% in February.The monthly and quarterly CPI reports, reported by StatsCan, measure the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing. The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the Bank of Canada as a sign of underlying inflation pressures.