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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...
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Manufacturing Slump Drags Canadian Economy into April Contraction

Canada’s economy contracted by 0.1% in April, according to Statistics Canada, marking a sharper-than-expected slowdown driven by widespread declines in the manufacturing sector.

Economists had anticipated flat growth for the month, but the downturn reflects mounting pressure across key industries. The manufacturing pullback was particularly notable, with sectors exposed to global trade tensions and tariffs bearing the brunt. This follows a modest 0.1% GDP increase in March, suggesting a reversal in momentum.

The data also casts a shadow over May, with preliminary estimates pointing to another month of contraction. Analysts are now watching closely for the Bank of Canada’s next move, as speculation grows around a potential rate cut amid signs of economic softening.

While the decline is modest, it underscores the fragility of Canada’s recovery and the growing impact of external pressures on domestic output.

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