Canada’s inflation rate falls to lowest level since August 2021, hits 4.3% in March – Business News

UPDATE 5:42 am

Statistics Canada says the country’s annual inflation rate fell to 4.3 per cent last month, down from 5.2 per cent in February.

That’s the lowest it’s been since August 2021 as global price pressures ease and high interest rates weigh on the economy.

The federal agency says Canadians paid more for mortgage interest last month, but that cost increase was offset by lower energy prices.

Lower prices for fruits and vegetables led to a deceleration in grocery prices as well, with prices up 9.7 per cent in March, down from 10.6 per cent in February.

Inflation in Canada is expected to continue decelerating this year, with most economists forecasting the annual rate to fall to three per cent by mid-2023.

ORIGINAL 5:16 am

Statistics Canada is set to release its March inflation reading this morning.

The federal agency’s latest consumer price index report will provide an update on the pace of price growth in the country.

RBC is forecasting the annual inflation rate fell to 4.1 per cent in March, down from 5.2 per cent in February.

The bank says the expected decline in inflation last month was likely driven by lower energy prices.

Canada’s annual inflation rate has been steadily declining since last summer, as global price pressures ease and high borrowing costs weigh on spending.

Inflation is expected to continue slowing in the coming months, with many economists forecasting the annual rate to fall to about three per cent by mid-year.