Canada’s annual inflation rate rose slightly last month, accelerated largely by higher gas prices, data showed Tuesday.
Statistics Canada reported that the overall inflation in the country was up 2.9 per cent year-over-year in March, from 2.8 per cent the previous month.
The annual pace of inflation cooled to 2.8 per cent in February compared with 2.9 per cent in January, the agency had reported last month.
This latest inflation report will be scrutinized by the Bank of Canada which kept its key interest rate on hold last week at five per cent for the sixth straight decision, but said it is “within the realm of possibilities” that it could cut interest rates in June.
The central bank has said it has seen good progress on inflation but needs to see sustained evidence it is headed toward its two per cent target.
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The inflation report comes as the federal government prepares to release its budget later this afternoon.
This is a breaking news story. More to come…
— with files from The Canadian Press
© 2024 The Canadian Press
