Inflation heats up to 2.3% in March, driven by gasoline

Canada's inflation rate rose to 2.3 per cent in the year ending in March, the highest level since October 2014, as gas prices and just about everything else got more expensive.

Inflation rate now at highest level since 2014 as everything but clothing and footwear rises in price

Canada's inflation rate is now at its highest level in more than three years, in part because of higher gasoline prices. (David Goldman/Associated Press)

Canada's inflation rate rose to 2.3 per cent in the year ending in March, the highest level since October 2014, as gas prices and just about everything else got more expensive.

Statistics Canada reported Friday that seven of the eight components the data agency tracks rose in March. The lone exception was clothing and footwear, which got 0.1 per cent cheaper in the previous 12 months.

Gasoline prices were 17.1 per cent higher in March than they were a year earlier. " Pump prices were up 2.9 per cent in the month," Bank of Montreal economist Doug Porter noted after the numbers came out, "and they are on track to rise another five per cent or so in the current month."

Stripping gasoline out of the numbers, the country's overall inflation rate would have been 1.8 per cent.

The Bank of Canada scrutinizes inflation data when it considers interest-rate decisions. The country's inflation rate is now right in the range that the bank targets.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.