Statistics Canada’s inflation figures show that the price of fresh vegetables just saw the largest spike in almost three years.
Canada’s inflation rate inched higher to 2.4 per cent in March, compared to 1.8 per cent in February, led largely by fuel costs amidst the Iran war and the closure of the Strait of Hormuz.
Excluding gasoline, though, the pace of inflation slowed to 2.2 per cent in March, compared to 2.4 per cent in February.
Food prices, however, soared in March. The prices of food purchased from stores rose by 4.4 per cent in March, compared to 4.1 per cent in February.
Fresh vegetables saw the steepest increase, with prices for fresh vegetables rising 7.8 per cent in March. This was a significant increase compared to February, which barely saw any increase in the price of fresh vegetables (0.5 per cent).
This is the largest increase in the prices of fresh vegetables since August 2023, when they grew by 8.7 per cent.
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Cucumbers, peppers and celery all had notable price growth in March, “due in part to tighter supplies related to adverse growing conditions in producing countries,” Statistics Canada said.
There was a slight silver lining for Canadians eating out at restaurants in March. While the price of food purchased at restaurants rose by 3.2 per cent in March, it was a much slower pace of growth compared to February, when it rose by 7.8 per cent.
But higher energy prices squeezed Canadians in March. In February, energy prices decreased by 9.3 per cent, but in March they rose by 3.9 per cent.
Higher gas prices were the “primary driver” of inflation in Canada, with consumers paying 5.9 per cent more for gas in March than they did in the same month last year. Compared to February, gas prices rose 21.2 per cent.
However, energy prices were sheltered by lower prices for natural gas (18.1 per cent decrease) since Canada’s natural gas prices “are largely dependent on North American supply and therefore more insulated from global price changes,” Statistics Canada said.
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