Annual inflation rate fell to 4.3% in March, lowest level since 2021

Statistics Canada’s consumer price index was released today, it says inflation fell to 4.3 per cent last month, which is down from 5.2 per cent in February.

Canada’s annual inflation rate fell to its lowest level since August 2021. Despite it being the lowest, high interest rates continue to weigh on the economy.

Statistics Canada says homeowners paid more for mortgage interest last month, but that cost increase was offset by lower energy prices.

Grocery prices are also still increasing quickly, but at a slower rate. Prices were up 9.7 per cent on a year-over-year basis in March, down from 10.6 per cent in February.

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The agency says the lower prices of fruit and vegetables led to the deceleration of grocery prices.

Inflation is expected to continue slowing down in 2023 but the Bank of Canada says it won’t rest until inflation gets to the two per cent target.

The central bank’s latest forecast is expecting inflation to return to its two per cent target by the end of 2024.

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