FXStreet reports that analysts at the Bank of Montreal (BMO) note that Canadian inflation hit the brakes hard at the start of the shutdowns, sliding from above target to below 1% in a single month.

“Canadian consumer prices fell 0.6% in March in the first month of the North American shutdowns. Adjusted for seasonal factors, prices fell 0.9% m/m, the largest monthly drop in the series stretching back to its inception in 1992.”

“The big monthly drop in prices also carved heavily into the annual inflation rate, slicing it to just 0.9% from 2.2% in February.”

“This was a much bigger slowdown than reported in some other major economies, despite a drop in the Canadian dollar in the month. Look for inflation to fall even further in the coming months, with a trip into negative terrain likely for a spell.”