The Canadian inflation rate declined in March compared to a month earlier, partially driven by lower gasoline prices.
Statistics Canada’s consumer price index on Tuesday showed Canada’s annual rate of inflation slowed to 2.3% last month, down from the 2.6% advance in February.
The decline in the March inflation rate caught analysts and economists by surprise, with most expecting a higher inflation rate of 2.5% to 2.7%.
Consumers paid 1.6% less at the pump year-over-year in March following a 5.1% increase in February, StatsCan said. The decline was largely a result of lower crude oil prices amid concerns of slowing global oil demand and slowing economic growth related to the threat of tariffs. Additionally, the Organization of the Petroleum Exporting Countries and its partners (OPEC+) confirmed a planned increase in output, the federal agency said.