Canada’s Inflation Blows Past Expectations at 31-Year High

Annual inflation in Canada rose to 6.7 percent in March, hitting the largest monthly increase in 31 years.

The headline rate last month was 6.7 percent, Statistics Canada reported on Wednesday, a full percentage point higher than in February and well above analysts’ expectation of 6.1 percent.

March marked the 12th consecutive month that the inflation rate was above the Bank of Canada’s target of 1 to 3 percent.

Canadian gasoline prices rose 11.8 percent just from February to March and 39.8 percent on the year as fuel prices surged over the war in Ukraine.

Higher fuel costs pushed up prices of groceries to 8.7 percent year-on-year in March, up from 7.4 percent in February and the largest yearly increase since March 2009.

The new figures increases the likelihood of the central bank making another large policy rate hike during its next monetary policy meeting in June.

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