Economics

Inflation Unexpectedly Hits 3% in Test for Bank of Canada

  • Consumer prices increase at fastest pace since September 2011
  • Gains may be transitory with underlying inflation at 2%
Shoppers in Toronto.Photographer: Brent Lewin/Bloomberg
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Canada’s inflation hit the 3 percent mark for the first time since 2011 in July, an unexpected surge that puts pressure on the Bank of Canada to accelerate interest-rate increases.

The consumer price index recorded an annual pace of 3 percent, quickening from 2.5 percent a month earlier, Statistics Canada said Friday from Ottawa. Economists expected the inflation rate to remain unchanged.