March inflation rate falls
Posted Apr 23, 2010 7:04 am.
This article is more than 5 years old.
The national inflation rate slipped from 1.6 percent in February to 1.4 per cent in March.
The core inflation rate recorded an even bigger drop last month now running at 1.7 per cent down from 2.1 per cent the previous month.
A huge drop in the price of accommodation is getting most of the credit for the decline.
Remember the rates Vancouver hotels and motels were charging in February have since been rolled back.
The Associate Vice President and Director of economic analysis with TD Bank Financial says the high flying loonie is also helping keep price increases in check.
Derek Burleton tells 660News the numbers are good news for consumers.
He says the drop in the inflation rate will ease the pressure on the Bank of Canada to boost it’s key lending rate.
Burleton says rates are headed higher but the central bank might only announce an increase of a quarter of a point in June instead of a half point.
Alberta’s inflation rate last month remained unchanged running at an even 1 per cent.
Calgary inflation rate rose a touch but is still well below the national and provincial numbers.
