Canada Inflation Accelerates to 2.4% in March

Canada’s consumer-price index jumped 0.9% in March—the largest monthly rise in just over a year—pushing annual inflation to 2.4% from February’s 1.8%. A record jump in gasoline prices drove much of the increase, while supply pressures from the Middle East remain contained for now. The data raises the prospect that the Bank of Canada will keep its policy rate steady, reinforcing expectations that monetary policy won’t ease soon. Markets sensitive to Canadian monetary policy and energy prices (including the Canadian dollar and fixed-income markets) may react to the stronger-than-expected CPI print as it reduces near-term odds of rate cuts.