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OTTAWA — Canada’s annual inflation rate accelerated in March, driven largely by a surge in energy prices tied to ongoing conflict in the Middle East.
Statistics Canada said the Consumer Price Index rose 2.4 per cent year over year in March, up from 1.8 per cent in February.
The increase was led by higher energy costs, particularly gasoline, as global supply disruptions pushed prices sharply higher.
Gasoline prices rose 5.9 per cent compared with a year earlier, while jumping 21.2 per cent month over month — the largest monthly increase on record.
Energy prices overall climbed 3.9 per cent year over year and 13.1 per cent from February.
Statistics Canada said the surge reflects a supply shock linked to instability in global oil markets.
Food prices also continued to climb, adding pressure for households already facing higher costs.
Grocery prices rose 4.4 per cent year over year in March, with fresh vegetables up 7.8 per cent — the largest increase since August 2023. The agency pointed to tighter supply and adverse growing conditions in exporting countries as key factors behind the increase.
Restaurant prices rose 3.2 per cent annually, a slower pace than in February due to base-year effects tied to the end of a temporary GST and HST break.
Excluding gasoline, inflation rose at a slower annual pace of 2.2 per cent in March.
Meanwhile, natural gas prices fell 18.1 per cent compared with a year earlier, helping offset some of the broader increase in energy costs.
The agency said base-year effects linked to the end of the tax break also put some downward pressure on the overall inflation figure.
On a monthly basis, the index rose 0.9 per cent in March.
Statistics Canada said price growth accelerated in every province compared with February, though increases varied by region.
The March data marks the final month affected by base-year comparisons tied to the tax break, meaning future inflation readings are expected to reflect more current price trends.
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