CBC NEWS - Canada's inflation rate dropped sharply in March, as the pace of increase in food and gasoline prices slowed significantly.
The consumer price index dropped to 1.9 per cent in March from 2.6 per cent in February, Statistics Canada said Friday.
The large drop was even more than the two per cent decline that economists had been expecting.
It's the first time in 18 months that the rate has been below the two per cent threshold. That's the level the Bank of Canada targets in making its decisions on interest rates.
Of the eight indices that the agency tracks for inflation, six posted slower year-over-year gains, including food and energy, which made up the lion's share of the overall slowdown.
Food prices rose 2.2 per cent in the 12 months to March, following a 4.1 per cent increase the previous month. As well, the cost of energy advanced 5.1 per cent in the 12 months to March, after rising 7.2 per cent in February.
The so-called core rate, which strips out volatile changes in food and energy prices, was at 1.9 per cent during the month, a drop from 2.3 per cent.
Regionally, not a single province saw inflation creep higher during the month.
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