Inflation rose again in March as gas prices continued to rise, a trend that seems to be running out of steam since this is the lowest increase in nearly two years.
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Thus, the consumer price index, which measures the average variation in the prices of products consumed by households, increased by 4.3% in March, but everything seems to be slowing all the same since it is the smallest increase since August 2021, when there was a 4.1% increase, according to Statistics Canada data.
“It is certainly far too early to claim victory in the fight against inflation. Basic effects […] have certainly helped the overall results, but the trajectory of inflation nevertheless remains encouraging,” mentioned Marc Desormeaux, senior economist at Desjardins.
Although gasoline prices have decreased compared to March 2022 (-13.8%), we can see that the price at the pump has increased compared to last month (+11.8%), thus continuing its trend upwards that started a few weeks ago.
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The increase in the price of a grocery basket also slowed in March (+9.7%), when compared to that recorded in February (+10.6%).
Inflation slowed in all provinces in March, particularly in the Atlantic regions where lower fuel prices played a significant role.
“The Bank of Canada should be encouraged by the inflation data released today, as it suggests that the sharp rise in interest rates, painful as it is, is having the intended effect in the sectors there. the most sensitive,” added Mr. Desormeaux, noting that the Bank of Canada could take “measures to reduce borrowing costs towards the end of the year.”