Ottawa/IBNS: Canada's annual inflation rate fell to 4.3 percent in March, its lowest level since August 2021, Statistics Canada reported Tuesday.

Canada's inflation slowed from 5.2 percent in February, continuing along a downward trend and is expected to descend to three percent by mid-year. 

The continued slowdown of Canada's inflation rate since last summer is due to factors including higher mortgage interest costs offset by lower energy prices, lower pace of rising grocery prices, lower prices for fruits and vegetables.

According to the Bank of Canada's latest forecasts, inflation is expected to return to its two percent target by the end of 2024.

(Reporting by Asha Bajaj)