Consumer inflation surged last month to 2.8 per cent compared to a year earlier with higher gas prices being the primary driver, according to Statistics Canada.
The latest Consumer Price Index (CPI) for April was up 0.4 per cent compared to the March report of 2.4 per cent for year over year inflation.
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This comes as the war in Iran, and specifically the closure of the Strait of Hormuz, has led to several months of global uncertainty for oil markets. Consumer gas prices in Canada have spiked since the conflict began, and are close to breaking all-time highs.
A higher inflation reading could put pressure on the Bank of Canada to raise borrowing costs in the months ahead, as the central bank’s target range for CPI is between one and three per cent.
– More to come