Produce is shown in a grocery store in Toronto on Friday, Nov. 30, 2018. An annual report estimates the average Canadian family will pay about $400 more for groceries and roughly $150 more for dining out next year. THE CANADIAN PRESS/Nathan Denette

Inflation rises 1.9% on higher prices for fresh vegetables, mortgage costs

Year-over-year gas prices dropped 4.4 per cent last month across the country

Canada’s annual inflation was up last month as price pressures strengthened for fresh vegetables, mortgage interest costs and auto insurance.

Statistics Canada said Wednesday that the country’s consumer price index increased 1.9 per cent in March, in line with economists’ expectations. It was higher than its readings of 1.5 per cent for February and 1.4 per cent in January, when inflation number was at a 15-month low point.

The agency’s core inflation readings, which are considered better measures of price pressures, rose two per cent in March — up from 1.9 per cent in February. They omit more-volatile items like gasoline and are closely watched by the Bank of Canada.

The firmer inflation picture brings both gauges closer to the central bank’s ideal two per cent target, and comes as the economy works through a soft patch brought on by the drop in crude-oil prices at the end of last year.

Compared with a year earlier, Statistics Canada said consumers paid 15.7 per cent more in March for fresh vegetables, 8.1 per cent more on mortgage borrowing costs and 5.6 per cent more for car insurance.

Year-over-year gas prices dropped 4.4 per cent last month, internet costs dropped 9.2 per cent and travel tours moved down 6.4 per cent.

Higher pump prices were a major driver of inflation last year before lower gas prices weighed on the measure in recent months.

In March, however, the downward pressure from cheaper gas eased off as global oil prices climbed, Statistics Canada said.

READ MORE: B.C. cities break North American gas price record

READ MORE: British Columbians are paying more for booze but also broccoli

Inflation accelerated in every province last month, with Alberta, New Brunswick and Prince Edward Island registering the strongest price growth.

The economy abruptly decelerated in the final three months of 2018. Bank of Canada governor Stephen Poloz has predicted the weakness to be temporary and for the economy to strengthen in the second half of 2019.

The central bank, which has hiked its key interest rate five times since mid-2017, will make a policy announcement next Wednesday. It’s widely expected to leave the benchmark unchanged.

In a separate report Wednesday, the agency said Canada’s trade deficit was $2.9 billion in February — which contributed to the country’s biggest three-month shortfall on record.

The February number followed revised trade deficits of $3.1 billion in January and $4.8 billion in December.

Exports were down 1.3 per cent in February, while imports declined 1.6 per cent.

Andy Blatchford, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Tears as Carson Crimeni memorial goes up at Langley Sportsplex

The family said they want to help others in the community

WEATHER: Rain makes a comeback in weekend forecast for Langley

Periods of rain are expected to begin Friday evening

Exploding enrolment prompts opening of second TWU campus in Richmond

Langley’s faith-based Trinity Western University opens a second campus in Richmond

Woman in Fraser Health region confirmed as sixth COVID-19 case in B.C.

Woman remains in isolation as Fraser Health officials investigate

Fraser Valley imports, exports slowed down by Aldergrove border hours: Langley chamber

Greater Langley Chamber of Commerce lends a helping local businesses thrive in new markets

VIDEO: B.C. senior recalls ‘crazy’ wartime decision to grab bear cub from den

Henry Martens – now 96 – says he was lucky to be alive after youthful decision to enter a bear’s den

Trudeau: Time for blockades to end and Indigenous leaders to work with government

Prime minister says situation in Coastal GasLink pipeline dispute is ‘unacceptable and untenable’

RCMP clarifies stance on removing officers from Wet’suwet’en territory in northern B.C.

Police say will remove officers only if hereditary chiefs keep road open to pipeline workers

Abbotsford mosque gets online hate for exhibit on Jesus

Event meant to bring community together gets attacked teaching religous differences

Petition slams Victoria councillor who chastised police after Wetsuweten protest

Ben Isitt calls effort to get him suspended is not a ‘reliable barometer of public opinion’

B.C., Ottawa sign sweeping 30-year deal for northern caribou habitat

West Moberly, Saulteau co-manage new protection on two million acres

PHOTOS: 2020 BC Winter Games kick off in Fort St. John

More than 1,000 of B.C.’s best athletes will be competing over the next three days

Meet the Wet’suwet’en who want the Coastal GasLink pipeline

Supporters of the pipeline are upset only one side is being heard nationwide

‘Usain Bolt he was not’: B.C. gang police seize drugs, cash after foot chase

‘The man took off running when he saw our officers approaching,’ CFSEU BC says

Most Read