Canadian inflation blows past expectations, spiking to 6.7% & More News Here – Upjobsnews

Canadian consumer price inflation shot past expectations in March, jumping to a new three-decade high and cementing expectations the Bank of Canada will continue with aggressive interest rate hikes in coming weeks.

Annual inflation rose to 6.7 per cent last month, up from 5.7 per cent in February, Statistics Canada reported Wednesday in Ottawa. That’s the highest since January 1991 and exceeds the median estimate of 6.1 per cent in a Bloomberg survey of economists. 

The report shows inflation pressures that are more elevated than the central bank estimated just last week, reinforcing pressure on policymakers led by Governor Tiff Macklem to withdraw stimulus from an overheating economy. Investors see strong probability of a second half-percentage point increase at its next meeting, after officials delivered a jumbo hike last week.

“Today’s surprise on inflation substantially increases the odds that we do see another 50-basis-point hike in June,” Josh Nye, an economist at Royal Bank of Canada, said in an interview on BNN Bloomberg Television. “The market was starting to lean in that direction and I think this is only going to add to that.”

Bonds were hit hard. The benchmark Canadian government two-year yield shot up to nearly 2.56 per cent — the highest since October 2008 — from about 2.52 per cent before the release. The 10-year yield moved above 2.8 per cent.

Prices rose by 1.4 per cent in March alone, the biggest one-month increase since the country introduced a federal sales tax in 1991. 

The reading may represent the peak of the run-up in annual price gains, capturing the impact of soaring food and energy costs after Russia’s invasion of Ukraine. Still, the return to anything resembling normal is expected to be prolonged and that’s a worry for policymakers trying to prevent inflation expectations from hardening at current levels.

And while gasoline prices were the biggest contributor to the monthly and annual gain in prices, inflation has become broad-based with sharp increases in costs for housing, food and cars. The average of the central bank’s core measures — often seen as a better indicator of underlying price pressures — rose to 3.77 per cent, also the highest since 1991. 

Goods inflation hit 9.2 per cent in March, the highest since 1982. Services inflation rose to 4.3 per cent, the highest since 2003.

Macklem and his officials forecast inflation would slow to an average 4.5 per cent by the fourth quarter of this year. Inflation averaged 5.8 per cent in the first quarter, versus Bank of Canada estimates of 5.6 per cent. 

On a seasonally adjusted basis, prices jumped 0.9 per cent in March, matching a record high. Gasoline prices were up 12 per cent on the month, and 40 per cent from a year earlier. Food prices were up 7.7 per cent from a year earlier, after a 0.9 per cent gain in March. Grocery prices were up 8.7 per cent on an annual basis.

I have tried to give all kinds of news to all of you latest news today 2022 through this website and you are going to like all this news very much because all the news we always give in this news is always there. It is on trending topic and whatever the latest news was

it was always our effort to reach you that you keep getting the latest news and you always keep getting the information of news through us for free and also tell you people. Give that whatever information related to other types of news will be 

made available to all of you so that you are always connected with the news, stay ahead in the matter and keep getting today news all types of news for free till today so that you can get the news by getting it. Always take two steps forward