Canada's annual inflation rate rose to 2.4 per cent in March, up from 2.2 per cent in February, Statistics Canada reported on Monday, April 21, 2026. The increase was primarily driven by higher prices for gasoline.
Energy prices were 3.9 per cent higher in March compared to a year ago. The rise in gasoline prices was attributed to global supply concerns and seasonal factors, not a war in Iran as previously reported in some sources. The agency noted that excluding gasoline, the Consumer Price Index rose 2.1 per cent year-over-year.
Other significant contributors to inflation included shelter costs and food prices, which continued to rise but at a slower pace than in previous months. The Bank of Canada's core inflation measures, CPI-trim and CPI-median, also saw slight increases, averaging 2.9 per cent.
This latest data places inflation slightly above the Bank of Canada's target range midpoint of 2.0 per cent, influencing ongoing discussions about future interest rate decisions.
