Statistics Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.7 m-o-m in March, the same pace as in the previous month.

On the y-o-y basis, Canada’s inflation rate increased 1.9 percent last month after a 1.5 percent gain in February. That was the highest inflation rate since December 2018.

Economists had predicted inflation would increase 0.7 percent m-o-m and 1.9 percent y-o-y in March.

According to the report, prices went up in all eight major components in the 12 months to March. The transportation index (+1.9 percent) drove the all-items CPI increase, as gasoline prices declined less in March than in February (-4.4 percent in March versus -11.9 percent in February). 

The closely watched the Bank of Canada's core index increased 1.6 percent y-o-y in March after gaining 1.5 percent y-o-y in the previous month.