Thursday, 7 July, 2022

Canada inflation jumps to 6.7pc

Canada inflation jumps to 6.7pc

OTTAWA: Canadians paid 6.7 percent more for goods and services in March than a year earlier, the government statistical agency said Wednesday, marking the largest rise in inflation in three decades.

Following inflation above five percent in both January and February, the March figure topped economists' expectations and prompted predictions of another hefty central bank interest rate hike soon, reports AFP.

"It's clear that the Bank of Canada needs to continue to act 'forcefully' to quell further inflationary pressures," Desjardins analyst Royce Mendes said in a research note.

After a 50 basis point increase in the Bank of Canada's key lending rate, he said to expect another 0.5 percentage point hike in June.

Statistics Canada said the inflation increase was the largest since Canada introduced a consumption tax in January 1991.

Price increases in March were spread across all major categories, amid sustained upward pressure in the housing market, as well as "substantial supply constraints and geopolitical conflict, which has affected energy, commodity, and agriculture markets," the agency said in a statement.