OTTAWA -
Excluding gasoline, Statistics Canada said the overall annual inflation rate for March was 2.8 per cent, down from 2.9 per cent in February. The Bank of Canada's three core measures for inflation for March also all moved lower compared with February. The central bank kept its key interest rate on hold last week at five per cent, but said it was “within the realm of possibilities” that it might cut rates at its next scheduled announcement in June.
Preston noted there was a sharp deceleration in inflation in the U.S., but now it's been rising again. “The bank will probably want to see the same again in the April CPI data, which will be released before the bank's next meeting, although a modest pick-up in the average monthly gain seems unlikely to prevent a cut in June,” Cross wrote in a report.