Canada’s annual inflation rate increased to 2.9 per cent in March [Video]

OTTAWA – Higher gasoline prices helped the annual inflation rate tick higher in March, but core inflation continued to cool for the month, raising the chances of an interest rate cut by the Bank of Canada in June.

Statistics Canada said Tuesday its consumer price index for March was up 2.9 per cent compared with a year ago, up from a 2.8 per cent year-over-year increase in February.

The increase came as gasoline prices rose 4.5 per cent compared with a year earlier, helped higher by an increase in global oil prices.

Excluding gasoline, Statistics Canada said the overall annual inflation rate for March was 2.8 per cent, down from 2.9 per cent in February. The Bank of Canada’s three core measures for inflation for March also all moved lower compared with February.

Leslie Preston, a managing director and senior economist at TD Bank, said she continues to expect the …