UPDATE 1-Canada March wholesale trade up 1.9 percent

(Adds details)

OTTAWA, May 17 (Reuters) - Booming sales for auto products pushed up Canadian wholesale trade by 1.9 percent in March from February, following a 1.0 percent month-on-month increase in February, Statistics Canada said on Thursday.

The increase -- well above market predictions of 0.5 percent -- is another sign the economy is performing better than expected. Data released earlier on Thursday showed core inflation at 2.5 percent, well above the Bank of Canada's 2.0 percent target.

"After showing signs of easing in the fall of 2006, wholesale sales have resumed their upward momentum in recent months, posting gains in four of the last five months," Statscan said in its daily commentary.

Half the increase in March was attributable to a 5.5 percent rise in sales of automotive products while there were also widespread gains in the building materials, machinery and electronic equipment and farm products sectors.

Sales in the first three months of 2007 rose by 3.4 percent, the best quarterly performance since the 4.6 percent increase recorded in the second quarter of 2004.

LINK:

*Statistics Canada report

here