Canada's Inflation Update - March 2024
Canada's Annual Inflation Edges Up**: After hitting an eight-month low at 2.8% in February, the inflation rate ticked up slightly to 2.9% in March 2024. This rate is below market expectations but aligns with the Bank of Canada’s forecast, suggesting a steady economic landscape.
- Gasoline Prices Fuel Inflation : The most significant driver this month was gasoline, which rose sharply by 4.5% year-over-year, accelerating transportation costs.
- Shelter Costs Apply Pressure : Mortgage interest costs and rent continue to climb, notably contributing to the inflationary push. The housing sector remains under strain due to high-interest rates and rising Treasury yields in the US.
- Moderating Costs in Other Areas : While transportation and shelter see rises, food inflation has slowed, and clothing prices have seen less fluctuation.
Potential Rate Cuts on the Horizon? : With inflation consistently under 3%, the stage might be set for the Bank of Canada to consider easing interest rates come June, potentially leading to more manageable living costs.
Stay tuned for more economic updates!
Alexander Gasenko, Mortgage Broker
DLC Maple Mortgage Group, Lic #13415
DLC Maple Mortgage Group, Lic #13415
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