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March inflation numbers are out
Putting on my business reporter hat for a second: March inflation numbers are out today, and they’re down 2.3 per cent on a yearly basis compared to February’s 2.6 per cent.
Why the lower headline number? Gas prices dropped as global demand for crude oil fell and concerns over the economic impact of tariffs heightened. The Organization of the Petroleum Exporting Countries — known as OPEC — announced a plan to increase production. Meanwhile, airfare and travel tour prices also came down in March.
Those price dips were slightly offset by the end of the GST holiday on Feb. 15. March was the first full month since November that the tax was back in effect, so prices came back up to around their pre-tax-break levels.
When you strip out gas — a very volatile sector that can cloud the economic outlook — inflation fell to 2.5 per cent in March from 2.6 per cent in February.
Today’s numbers are the last bit of economic data the Bank of Canada will get before it makes its next interest rate decision tomorrow. We’ll be watching to see how it impacts the decision, and what that means for Canada’s economy.
