Inflation slows to 4.3 per cent in March, lowest since August of 2021

Canada’s inflation rate fell to 4.3 per cent in March, down from 5.2 per cent in February.

The slowdown – to the lowest mark inflation has been since August of 2021 – was partially due to high energy prices, which offset higher mortgage interest costs.

The downward trajectory is expected to bring inflation down to just three per cent by the middle of this year.

Despite the overall drop, food prices and mortgage pressures continue to put a strain on Canadian wallets.

Food prices were up 9.7 per cent year over year in March, though it was a slight drop from 10.6 per cent in February. Mortgage interest costs jumped at the fastest pace on record last month, and are up 26.4 per cent from where they sat a year ago.

The Bank of Canada is working to get inflation back to its two per cent target, but recently said interest rates may need to stay higher in order to achieve that goal.

The central bank held its key interest rate at 4.5 per cent last week, the highest it’s been since all the way back in 2007.

–With files from The Canadian Press