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Canadian Inflation Blows Past Expectations, Spiking to 6.7%

  • Price pressures stoke bets for second half-point rate hike
  • Return to more normal readings expected to be prolonged
Gasoline prices were the biggest contributor to Canadian consumer price inflation in March.

Gasoline prices were the biggest contributor to Canadian consumer price inflation in March.

Photographer: Taehoon Kim/Bloomberg
Updated on

Canadian consumer price inflation shot past expectations in March, jumping to a new three-decade high and cementing expectations the Bank of Canada will continue with aggressive interest rate hikes in coming weeks.

Annual inflation rose to 6.7% last month, up from 5.7% in February, Statistics Canada reported Wednesday in Ottawa. That’s the highest since January 1991 and exceeds the median estimate of 6.1% in a Bloomberg survey of economists.