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Inflation Hits 5.7% in Canada With More Price Spikes Looming

  • Gains exceed Bank of Canada control range for 11th month
  • Macklem beginning aggressive interest-rate hiking cycle
Shoppers walk through a mall in Toronto. Inflation has now exceeded the Bank of Canada’s 1% to 3% control range for 11 straight months.

Shoppers walk through a mall in Toronto. Inflation has now exceeded the Bank of Canada’s 1% to 3% control range for 11 straight months.

Photographer: Brent Lewin/Bloomberg
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Canadian consumer price inflation jumped to a new three-decade high in February, cementing expectations the Bank of Canada will aggressively hike interest rates in coming months to rein in price pressures.

Annual inflation was 5.7% last month, up from 5.1% in January, Statistics Canada reported Wednesday in Ottawa. That’s the highest since August 1991 and exceeds the median estimate of 5.5% in a Bloomberg survey of economists.