The annual inflation rate in Canada has reportedly declined to 1.4% in March from 1.6% in February. This drop in the rates has resulted from the decline in the expenses of clothing and mortgage interest and the rise in gasoline prices.

In view of this greater-than-expected dip in inflation and boost in the economy, the Bank of Canada is likely to increase its key policy rates.

Governor Mark Carney yesterday shared that inflation is expected to be a little greater than the bank's estimation of 2% over the next one year.

Russell Breweries Inc.'s Chief Executive Officer, Brian Harris said that he still doesn't agree that the customers have reached the saturation point of shopping.

"The jury is still kind of out on the durability of the economic recovery", he said.

The Canadian dollar lost 0.2% per U. S. dollar.

As tracked by Statistics Canada, six of eight main categories have reported a rise. The prices of clothing and footwear depicted a drop of 2.2%, followed by women's apparels.

In March, the shelter costs dropped by 0.7%, accompanied by a 6% drop in the mortgage interest costs.