Economics
Canadian Inflation Surges As Core Rate Hits Highest Since 2012
- Consumer prices up 2.4% from year ago, versus 2.1% forecast
- Bank of Canada may question need to follow Fed rate cuts
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Canadian inflation quickened in May on increases across the board, giving the Bank of Canada plenty of scope to hold interest rates steady.
The consumer price index jumped 2.4% from a year earlier, compared with 2% in April and versus a median economist forecast of 2.1%, Statistics Canada said Wednesday from Ottawa. It was the highest annual rate since October, boosted by increases in food and durable goods prices. Core inflation, a better gauge of underlying price pressures and one that’s closely watched by policy makers, rose to the highest since 2012.