The slowdown was mainly due to an 11.6 percent drop in energy prices that saw consumers pay significantly less for gasoline and other fuels, it said.
Oil prices plummeted "as a result of lower demand as global economic activity, trade and travel slowed in response to the COVID-19 outbreak, as well as an oversupply of oil amid tensions between oil-producing nations."
The crisis in the oil markets caused by the coronavirus was compounded by a price war between Russia and Saudi Arabia.
While the pair drew a line under the row and led producers into slashing output by 10 million barrels a day, that has not been enough to prevent historic price falls.
Despite the cuts and low demand, production is still high and storage is nearing a bursting point. Excluding energy, Canada's Consumer Price Index actually rose 1.7 percent in March.