Canada Inflation Rises Above Forecasts in March

The annual consumer prices in Canada accelerated to 1.5 percent in March of 2014 following a 1.1 increase in the previous month, as energy prices surged.
Statistics Canada | Isabel Felino | 4/17/2014 2:16:13 PM
In March of 2014, upward pressures came mostly from higher energy prices by 4.6 percent on a year-over-year basis from a 1.6 percent increase in February. Gasoline prices rose 1.4 percent, after decreasing 1.3 percent in February. In addition, the natural gas increased 17.9 percent, following a 5.5 percent rise in the previous month. 

Prices for electricity rose 5.0 percent in March, while prices for fuel oil increased 9.1 percent.

Shelter costs advanced 2.7 percent on a year-over-year basis in March, after rising 2.2 percent in the previous month. Additional upward pressures came from prices of transportation (1.7 percent from 0.4 percent), food (1.5 percent from 1.1 percent), alcoholic beverages and tobacco (3.9 percent from 2.5 percent). 

The clothing and footwear index fell 1.4 percent in the 12 months to March from -0.4 percent, while health and personal care index decreased 0.2 percent.

Consumer prices rose in all provinces in the 12 months to March. The largest increase was observed in Alberta, while the smallest was in British Columbia. The rise in the natural gas index in March was mainly attributable to a price increase in Alberta.

On a monthly basis, the inflation rate increased 0.6 percent in March, down from 0.8 percent recorded in the previous month.

Canada Inflation Rises Above Forecasts in March