Canada's inflation rate hit 2.4% in March. Here's how it compares to the world's top economies
Canada’s annual inflation rate rose to 2.4 per cent in March, Statistics Canada said on Monday.
Higher energy costs drove the increase, with inflation accelerating from 1.8 per cent in February, as consumers faced the largest monthly increase in gas prices on record, at 21.2 per cent.
Energy prices rose 3.9 per cent compared to a year ago, while prices for food purchased from stores rose 4.4 per cent year over year in March, up from 4.1 per cent in February. Fresh vegetables prices climbed 7.8 per cent, marking the largest increase since August 2023.
Excluding the price of gas, inflation came in at 2.2 per cent, Statistics Canada said.
Overall inflation figures came in below analysts’ expectations of 2.6 per cent.
“Much as other major economies posted a significant pop in headline inflation, the record rise in gasoline prices lifted Canada’s inflation rate significantly last month. However, the picture for underlying inflation was a bit better than expected, and continues the recent pattern of steadily moderating core inflation trends,” Douglas Porter, chief economist at the Bank of Montreal, said in a note to clients .
Canada is not alone in facing rising inflation — the ongoing conflict in Iran has constrained global oil supply, driving fuel shortages and sharp increases in gas prices worldwide.
According to the International Monetary Fund ’s (IMF) latest World Economic Outlook, released April 14, inflation rates vary widely across the world’s advanced economies.
Among these, Canada’s inflation rate remains below the 2026 average of 2.8 per cent, which is up from 2.5 per cent in 2025.
Of the 42 countries classified as advanced economies, Canada ranks 28th for inflation rate (which IMF data puts at 2.5 per cent, slightly above the latest figure from Statistics Canada).
Finland, South Korea, Malta and Austria are also projected at 2.5 per cent, with Czechia at 2.4 per cent, followed by Israel and Singapore at 2.3 per cent.
IMF data shows Canada’s inflation rate below that of the U.S. (3.2 per cent), the United Kingdom (3.2 per cent), Australia (4 per cent) and New Zealand (3.1 per cent).
Iceland sits at the top of the list, with an inflation rate of 4.8 per cent, followed by Croatia (4.4 per cent) and Slovakia (4.2 per cent).
At the other end of the data set, Liechtenstein and Switzerland boast the lowest inflation rates, at 0.5 per cent.
BMO economist Douglas Porter said of Canada’s latest inflation figures: “It could have been worse.”
“Our considered view is that if it were not for the conflict with Iran, the discussion would currently be revolving around the strong possibility of Bank of Canada rate cuts, not hikes. This report reinforces that opinion,” he added.
However, with the conflict in Iran ongoing, Canadians shouldn’t expect inflation to slow down.
In addition, Statistics Canada noted that the removal of the consumer carbon tax in April last year, which had created a drag on inflation numbers, will no longer factor into the year-over-year calculation.
Porter said gas prices are “still poised to rise”, and overall inflation is expected to lift above 3 per cent next month.
He added: “ It’s possible that April will mark the high-water point for inflation this year.”
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