Inflation rose to 2.9 per cent in March led by higher gasoline prices, Statistics Canada said Tuesday.
The 0.1 percentage point increase from 2.8 per cent the previous month was largely expected after consumer inflation in the US accelerated last week.
Rising costs of living are proving to be the biggest obstacle to both Prime Minister Justin Trudeau and US President Joe Biden’s re-election hopes.
Biden is facing Donald Trump in a tight race to a November ballot while Trudeau trails Conservative Party leader Pierre Poilievre by more than 10 points in public opinion polls with an election looming in 2025.
Political pundits have said interest rates and prices overall must come down in the coming 18 months if Trudeau is to have any chance of convincing voters to continue supporting his minority government.
According to Statistics Canada, year over year gasoline prices increased 4.5 per cent in March, following an 0.8 per cent rise in February.
New home prices fell slightly in the month but not enough to offset a jump in mortgage interest costs.
Rents were up too, along with air transportation, clothing and footwear, and passenger vehicle insurance premiums.
Telephone and Internet services, as well as natural gas prices, meanwhile, fell.
