Canada inflation: Price pressures mount in March – ING

Sandeep Kanihama FXStreet Contributor

James Smith, developed markets economist at ING, points out that the Canadian inflation picked up significantly in March, rising from 1.5% to 1.9% in annual terms, driven primarily by the ongoing rebound in energy prices.

Key Quotes

“Gasoline prices rose 12% in February - the most substantial one-month gain since 2007. Throw in the fact that two out of the Bank of Canada's three core inflation measures rose back up to (or above) 2%, and overall, price pressures appear to be growing a little quicker than we had previously anticipated.”

“Despite the slightly better news on inflation, the deterioration in the economic outlook means a Bank of Canada hike this year isn't guaranteed.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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