Statistics Canada reported on Wednesday the country's consumer price index (CPI) fell 0.7 percent m-o-m in March, following a 0.6 percent m-o-m fall in the previous month.

On the y-o-y basis, Canada's inflation rate decreased 0.2 percent last month after a 0.9 percent advance in March. That was the first y-o-y decline in the CPI since September 2009.

Economists had predicted CPI would decrease 0.6 percent m-o-m and 0.1 percent y-o-y in April.

According to the report, prices rose in five of the eight major components on a y-o-y basis, with food prices (+3.4 percent) recording the largest increase of any major component. On the contrary, energy prices continued to decline due to the COVID-19 pandemic, with gasoline prices (-39.3 percent) posting the largest y-o-y decrease on record. Excluding energy, the CPI rose 1.6 percent y-o-y in April. In addition, consumers paid less for clothing and footwear (-4.1 percent) and recreation, education and reading (-0.7 percent).

The closely watched the Bank of Canada's core index rose 1.2 percent y-o-y in April, after a revised 1.6 percent y-o-y gain in March (originally, a 1.7 percent y-o-y advance).