Canada: Inflation accelerates in March from February
Latest reading: Consumer prices increased 2.4% in annual terms in March, following a 1.8% increase in the previous month. March’s reading was the strongest since February 2025 but slightly below market expectations and within the Central Bank’s 1.0–3.0% inflation target range. The uptick from February was driven by the Iran war boosting fuel prices.
Relative to the prior month’s figures, there were higher price pressures for housing (+1.7% on a year-on-year basis vs +1.5% in February), transportation (+2.9% vs -0.6% in February) and recreation and culture (+2.6% vs +0.5% in February). In contrast, there were reduced price pressures for food (+4.0% vs +5.5% in February) and clothing and footwear (-0.4% vs +0.5% in February).
Meanwhile, core consumer prices were up 2.5% on a year-on-year basis in March, following a 2.3% rise in the previous month.
Lastly, consumer prices were up 0.90% in March on a month-on-month basis, following a 0.55% increase in the prior month.