Annual inflation in Canada fell to 4.3% in March, the lowest rate since August 2021.
The drop, from 5.2% in February, comes a month after the Bank of Canada paused its interest rate hiking campaign after raising borrowing costs for eight consecutive meetings.
- The slowdown was driven by lower energy prices, with gasoline prices falling for the second consecutive month on an annual basis.
- Food prices rose by 9.7% in March, down from the 10.6% annual rate for February.
- The Consumer Price Index rose 0.5% from the previous month, in line with forecasts.
- The Bank of Canada became the first major central bank to pause its rate-hiking campaign last month, when it kept its overnight interest rate at 4.5%.
- The central bank projects that headline inflation will fall to ~3% by mid-2023.
