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Canada’s annual inflation rate rose to 2.4 per cent in March, Statistics Canada said on Monday, as the cost of oil sent fuel prices way up.<\/p>\n
High prices for energy, especially gas, due to the war in Iran drove inflation higher. Energy prices were 3.9 per cent higher compared to a year ago, and the data agency said March’s 21.2 per cent monthly increase in the price of gasoline was the largest on record.<\/p>\n
The impact on inflation would have been higher, Statistics Canada noted, if it weren’t being compared to prices from March 2025 that still included the consumer carbon tax, which was dropped in April of last year.<\/p>\n
Higher fuel costs also impacted the cost of transportation \u2014 up 3.7 per cent year over year in March \u2014 and helped drive overall inflation higher.<\/p>\n
Prices for food at stores rose 4.4 per cent on an annual basis, up from 4.1 per cent last month. In particular, fresh vegetable prices jumped 7.8 per cent year-over-year in March, which Statistics Canada chalked up to recent tough growing conditions for cucumbers, peppers and celery.<\/p>\n
Economists widely expected higher gas prices because of the oil crunch in the critical Strait of Hormuz. That’s cut off about a fifth of the world’s oil supply, causing fuel shortages in some places and gas prices to jump worldwide. <\/p>\n
“Everyone knew that inflation jumped in March due to higher gasoline prices. The only question remaining was how high?” CIBC economist Andrew Grantham said in a note to investors.<\/p>\n