March saw a significant deceleration in inflation growth, with CPI increasing by 4.3% YoY – the smallest increase since August 2021. Bank of Canada continues to monitor the impact of interest rate increases on inflation. Food & energy prices dropped, but food prices remain elevated while mortgage interest costs increased by 26.4% YoY. Durable goods prices continue to decelerate, while services prices are trending downwards at a slower pace. The Bank of Canada is exercising aggressive monetary tightening to bring prices back down and expects a brief period of negative growth to help ease inflation levels.
| Item | Year-over-Year Change |
|---|---|
| Consumer Price Index (CPI) | 4.3% |
| CPI Excluding Food and Energy | 4.5% |
| Bank of Canada’s Three Measures of Core Inflation | 5.0% |
| Energy | -6.9% |
| Food | 8.9% |
| Mortgage Interest Costs | 26.4% |
| Homeowners’ Replacement Cost Index | 1.7% |
| Durable Goods | 1.6% |
| Services | 5.1% |
Note: All changes are year-over-year unless otherwise indicated. CPI measures the change in the price of goods and services purchased by consumers over time. Core inflation measures the change in the price of goods and services, excluding food and energy, which can be more volatile. The Bank of Canada uses a range of measures to monitor inflation, including core measures, to assess whether it is meeting its inflation target of 2%.
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SAFAVI, M 