The recent release of the Consumer Price Index (CPI) data for March 2024 by Statistics Canada provides valuable insights into the current inflationary trends in the country. The report reveals a 2.9% year-over-year increase in the CPI, a slight uptick from the 2.8% gain observed in February.
One of the notable contributors to the overall CPI increase was the transportation sector, which saw a 3.0% rise year-over-year. This surge was primarily driven by a 4.5% increase in gasoline prices in March, attributed to higher global crude oil prices due to geopolitical conflicts and voluntary production cuts.
Shelter prices continued to exert upward pressure on the CPI, with a 6.5% year-over-year increase in March. This rise was largely fueled by escalating mortgage interest costs and rents. The mortgage interest cost index surged by 25.4% year-over-year, while rent prices climbed 8.5%, reflecting the challenges of the higher interest rate environment for homeownership.
Prices for services saw a more pronounced increase compared to goods, with a 4.5% rise year-over-year, driven by sectors like air transportation and rent. In contrast, price growth for goods slowed to 1.1% year-over-year.
On a monthly basis, the CPI grew by 0.6%, with broad-based price growth across various categories. After seasonal adjustments, the monthly CPI increase stood at 0.3% in March.
After experiencing declines in January and February, clothing and footwear prices rebounded in March, rising by 1.4% on a seasonally adjusted basis. Despite this monthly increase, the year-over-year index for clothing and footwear remained negative, contributing to upward pressure on the all-items CPI.
In terms of regional variations, prices rose at a faster pace in March compared to February in seven provinces. Notably, Atlantic Canada saw an acceleration in prices for fuel oil and other fuels, which fell less on a year-over-year basis in March compared to February.