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Canadian inflation hit 31-year high of 6.7% in March


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OTTAWA — Canada’s annual inflation rate accelerated in March to 6.7%, a percentage point higher than in February and well above expectations, due to widespread price pressures , Statistics Canada data revealed on Wednesday.

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This is the highest rate since January 1991, when it reached 6.9%, and was above the Bank of Canada’s control range of 1% to 3% for the 12th consecutive month. Analysts polled by Reuters had forecast inflation to rise to 6.1% in March.

“Prices rose amid continued pricing pressure in Canadian real estate markets, significant supply constraints and geopolitical strife, which affected energy, commodity and agriculture markets. “said Statscan.

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The agency noted that a tight labor market is also behind wage inflation. Durable goods rose at their fastest pace since 1982, driven by vehicle and furniture prices.

Gasoline prices rose 11.8% on the month and 39.8% on the year, as oil prices jumped in March following Russia’s invasion of Ukraine. Food prices jumped 8.7% on the year, with pasta and grain products rising sharply as wheat futures prices jumped, Statscan said.

The common CPI measure, which the Bank of Canada says is the best indicator of the economy’s performance, rose to 2.8% from a revised rate of 2.7% in February. The reduction in CPI was 4.7% and the median CPI was 3.8%.

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The Bank of Canada raised interest rates by half a percentage point last week and said more hikes were coming to fight inflation. Governor Tiff Macklem said Canada’s central bank would continue to act “forcefully” if necessary.

The Canadian dollar hit a three-week high of 1.2517 for the greenback, or 79.89 US cents, after the data.

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