Huge jump in Canadian inflation

Canada’s annual inflation rate shot up in March to its highest level since September 2008 and above the central bank’s target range, official data showed yesterday. The consumer price index soared by 1.1 per cent last month, to an annualised 3.3 per cent. Food and energy were the main drivers behind the spike, with core inflation coming in at 1.7 per cent. Clothing prices also jumped, by 5.6 per cent on the month, with ING’s James Knightley commenting: “Today’s release suggests that inflation may be more broad-based than previously anticipated. It will provide ammunition for the Bank to raise rates at the May meeting.”