Economics

Canadian Inflation Jumps to 3.7%, Creating Trouble for Trudeau

  • July reading hits highest since 2011 amid election campaign
  • Bank of Canada argues spike in prices will be temporary
Photographer: Christopher Katsarov Luna/Bloomberg
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Canadian inflation accelerated to match its highest reading in almost two decades, threatening to become a political headache for Prime Minister Justin Trudeau during an election campaign.

The consumer price index was up 3.7% in July from a year earlier, Statistics Canada reported Wednesday in Ottawa. It last hit that level in 2011. Canada hasn’t recorded inflation above above 3.7% since 2003. Economists were anticipating the rate to increase to 3.4%, from 3.1% in June.