After two consecutive months of decline, the annual inflation rate started to rise again in March to reach 2.9%.
This increase in the Consumer Price Index was expected and is largely explained by the increase in the price of gasoline, indicates Statistics Canada. Without gasoline, price growth would be 2.8%. In Quebec, inflation increased from 3.3% in February to 3.6% in March.
The increase in food prices went from 3.3% in February to 3% in March.
Pump prices rose in March as crude oil prices rose globally. Housing prices, which include the cost of mortgage interest and the cost of rent, contributed the most to the annual increase in the CPI, according to Statistics Canada. The cost of mortgage interest is up 25.4% year over year and rental prices are up 8.5%.
The cost of air transportation also pushed the index higher. The price of services increased by 4.5% while that of goods increased by 1.1%.
The governor of the Bank of Canada warned last week that inflation could increase due to the rise in the price of gasoline. The central bank wants to ensure that the decline in inflation will be lasting before initiating a reduction in interest rates. The figures for March should convince her to wait even longer.