Inflation on the Rise
CBJ – The country’s core inflation rate grew at its fastest pace in more than six years in March, led by increasing costs for everything from food and automobiles.
The core consumer price index, which excludes gasoline and seven other items with volatile prices, increased to 2.4% from 2.1% in February, marking the steepest rate since November, 2008.
Cumulative inflation accelerated to 1.2% from 1%. A number of economists had predicted core and total inflation would rise 2.1% and 1%.
Meanwhile, the Bank of Canada kept its key lending rate at 0.75%. The economy is gaining momentum after a plunge in oil prices caused first-quarter output to stall.
Passenger vehicle prices saw a 1.8% rise in March from a year earlier after falling at a 1% rate in February. Meat costs rose a staggering 11.8% while telephone services expanded by 6.3% according to Statistics Canada.