Canada’s annual inflation rate slowed to 2.3 per cent in March, a drop from 2.6 per cent the month before, according to Statistics Canada.

The decrease was driven largely by falling prices for gasoline, travel tours, and airfares. Gas prices were down 1.6 per cent year over year, reversing a 5.1 per cent jump in February. Travel tour prices also saw a sharp drop—down 4.7 per cent—while airfare declined 12 percent.

However, the end of the temporary GST/HST holiday in mid-February has started putting upward pressure back on consumer costs. March marked the first full month with those taxes fully reinstated, and prices for items such as restaurant meals rose 3.2 percent compared to a year ago.

Cellphone service saw a notable decrease as well, with prices down 8.8 per cent year over year due to promotions and plan changes in March.

Despite the cooling trend, experts say external pressures remain. The ongoing trade tensions with the United States, including tariff concerns under President Donald Trump, are affecting oil prices and broader consumer costs.