Statistics Canada reported on Wednesday the country's consumer price index (CPI) fell 0.6 percent m-o-m in March, following a 0.4 percent m-o-m advance in the previous month.

On the y-o-y basis, Canada's inflation rate increased 0.9 percent last month, decelerating from 2.2 percent in February. That was the lowest inflation rate since May 2015.

Economists had predicted inflation would decrease 0.4 percent m-o-m but rise 1.2 percent y-o-y in March.

According to the report, prices rose in six of the eight major components on a y-o-y basis, with shelter prices (+1.9 percent y-o-y) contributing the most to the all-items advance. At the same time, consumers paid less for transportation (-1.2 percent y-o-y) and recreation, education and reading (-0.5 percent y-o-y) compared with March 2019.

Meanwhile, the closely watched the Bank of Canada's core index rose 1.7 percent y-o-y in March, after a 1.8 percent gain in February.