Skip to main content

Featured

Canada’s Inflation Climbs to 2.4% as Gas Prices Surge to Record High

  Canada’s inflation rate accelerated to 2.4% in March , up from 1.8% in February, as the Iran war triggered the largest monthly gasoline price increase on record . Statistics Canada reported that gas prices surged 21.2% month‑over‑month , a supply‑shock response to Iran’s closure of the Strait of Hormuz and broader Middle East instability.  Energy costs were the dominant driver of March inflation, with overall energy prices rising 3.9% year‑over‑year after a sharp decline the month before. Excluding gasoline, inflation would have eased to 2.2% , highlighting how concentrated the price shock was.  Food inflation offered mixed relief: grocery prices rose 4.4% , while fresh vegetables jumped 7.8% due to difficult growing conditions. Restaurant inflation cooled sharply as last year’s tax‑holiday distortions fell out of the annual comparison.  Economists note that while headline inflation spiked, core measures remained relatively tame , giving the Bank of Canada ro...
Post a Comment
Read more

article

Labels

C$ falls to a four-week low against the US dollar as investors watch the economy's reaction to rate hikes

 


The Canadian dollar (C$) has slipped against the US dollar as investors are keeping a close eye on the economy's reaction to rate hikes. The C$ fell to a near four-week low against the US dollar, trading 0.4% lower at 1.3395 to the greenback, or 74.65 US cents. The Bank of Canada (BoC) has said that a slowdown in the domestic economy is an indication that its monetary policy is working. Money markets expect the central bank to cut its benchmark interest rate in April after holding it at a 22-year high of 5% for a third straight policy meeting in December. Canadians borrowed heavily during the pandemic to participate in a red-hot housing market. The BoC has said that the domestic economy is particularly sensitive to higher borrowing costs. 



Labels:

Comments

Post a Comment