Unexpectedly weak inflation report

By Canadian Press

Published: April 21, 2017 at 1:56 PM

Signage mark the Statistics Canada offiices in Ottawa on July 21, 2010. Statistics Canada says 13.8 per cent of the population lived in low-income households in 2012. THE CANADIAN PRESS/Sean KilpatrickSean Kilpatrick/The Canadian Press

The countrys annual inflation rate slowed to an unexpectedly weak 1.6 per cent last month as the continued decline in food prices played a big role in offsetting the higher cost of gasoline.

The country's annual inflation rate slowed to an unexpectedly weak 1.6 per cent last month as the continued decline in food prices played a big role in offsetting the higher cost of gasoline.

The latest reading from Statistics Canada shows the pace of inflation decelerated from February's year-over-year reading of two per cent, which was right on the Bank of Canada's ideal target.

A consensus of economists had predicted 1.8 per cent inflation for March.

Statistics Canada's consumer price index shows some of the biggest downward forces on inflation were lower prices for clothing, footwear, fresh fruit and vegetables.

The report says year-over-year food prices fell 1.9 per cent in March, a sixth-straight monthly decline.

The agency says higher costs for purchases such as gas and travel tours were among the primary contributors last month to the upward pressure on prices.