The Canada Statistics Office issued consumer price index data for last March, which was negative and below market expectations for the third consecutive month.

According to the data, the consumer price index recorded a growth of 0.6%, while markets had expected inflation to rise by about 0.7%. The previous reading of the Canadian inflation index had recorded an increase of 0.3% by the end of February.

At the same time, the annual core consumer price index in Canada recorded about 3.1%, which is lower than expectations that indicated the index would record the same reading as in February, which is about 3.2%.

Also, the overall annual Canadian inflation recorded a reading below expectations, stabilizing at 2.9%, which is lower than the expectations that the overall inflation would be about 3%. The previous reading for February showed that the Canadian inflation index recorded about 3.1%, which was revised down to 3%.

It is worth noting that the Canadian inflation index measures the average prices of a basket of consumer and service goods such as transportation, food, and medical care, and it is determined by calculating the average price of each item in the predefined basket. Additionally, the consumer price index is one of the most important indicators of inflation, and thus it affects the evaluation of currency. Rising prices prompt central banks to raise interest rates to counter high inflation.