Unexpected Drop in Canada's Inflation Rate

Statistics Canada reported on Tuesday that the consumer price index (CPI) increased by 2.3% in March compared to the previous year, marking a decrease from February's 2.6% and falling below expectations.

Key Factors Behind the Decline

The decline in inflation was primarily due to significant drops in the prices of travel tours and gasoline, which saw year-on-year decreases of 4.7% and 1.6%, respectively. Additionally, the CPI experienced a modest monthly increase of 0.3% in March.