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

Lake Country woman turns Beauty and the Beast into an opera

The performance will be on July 4. at 7:30 p.m.

Gas spill in Kelowna

Approximately 200 litres were spilled onto a parking lot off of McCurdy Road

Police seek two suspects and car after stabbing in Kelowna

The stabbing took place on Friday evening on Wilson Avenue. It sent one man to hospital.

Caged: Kelowna Falcons suffer 6th straight loss

The Falcons look for revenge Saturday night after a 15-5 loss

10 facts about Father’s Day

Did you know that the special day for dads was first celebrated in 1910?

Thunderstorm leaves small fire in the Shuswap in its wake

Wildfire crews are also fighting a small fire near Kamloops

South Okanagan pharmacy restricted from dispensing opioid treatment drugs

B.C. College of Pharmacists alleges Sunrise Pharmacy dispensed treatment drugs against rules

Okanagan pitcher tosses second no-hitter of season

Vernon’s Jarod Leroux has two no-nos in his last three starts for the BCPBL’s Okanagan Athletics

B.C. VIEWS: When farmland protection doesn’t protect farmers

Secondary residences aren’t mansions, families tell Lana Popham

Summerland Health Care Auxiliary completes hospital donation pledge early

$1M contribution to medical equipment campaign completed half a year earlier than expected

Bombers down B.C. Lions 33-23 in season opener

Former Lion Andrew Harris leads Winnipeg with 148 rushing yards

Summerland ready for dry summer conditions

Province has declared Level Two drought, but Summerland has not increased watering restrictions

Summerland pioneers had connection to Middlesex, England

Harry Dunsdon and Richard Turner became cattlemen

Most Read