Canadian consumer prices rose 1.5 per cent in the twelve months to March, a 0.4 point increase from February's inflation reading of 1.1 per cent. The increase was largely the result of a rise in energy prices of 4.6 per cent. The Bank of Canada's index of core inflation, which strips out the most volatile components of the CPI, such as food and energy prices, increased 1.3 per cent in March. Inflation remains relatively non-existent in British Columbia. Consumer prices in BC increased 0.5 per cent from February and were just 0.1 per cent higher year-over-year in March.
As noted in yesterday's interest rate decision, the Bank of Canada expects energy prices to push total CPI inflation higher throughout 2014, while core inflation is forecast to remain relatively muted.
Copyright BCREA -reprinted with permission