Canada’s annual inflation rate increased to 2.4 percent in March, driven largely by a sharp rise in energy costs, according to data released by Statistics Canada on Monday.
The surge was primarily linked to escalating fuel prices, with gasoline recording a monthly jump of 21.2 percent — the steepest increase ever documented. On a yearly basis, overall energy prices rose by 3.9 percent, reflecting the impact of global supply disruptions tied to the ongoing conflict involving Iran.
Statistics Canada noted that the inflation figure would have been even higher if not for a base-year comparison with March 2025, when consumer carbon pricing was still in effect, slightly moderating the annual calculation.
Market analysts had anticipated an upward trend in inflation due to rising fuel costs. A Reuters survey indicated expectations for inflation to reach 2.5 percent in March, up from 1.8 percent in February, based on data from LSEG Data and Analytics.
The latest figures highlight the growing influence of global geopolitical tensions on domestic price levels, particularly through volatile energy markets.
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