Canada’s inflation rate hits 2.4% in March as war fuels highest monthly gas-price increase on record
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- Canada's annual CPI climbed to 2.4% in March, up from 1.8% in February but below the 2.6% forecast.
- Gasoline prices surged 21.2% month‑over‑month in March, the largest monthly increase on record, as oil shipments were disrupted by the closure of the Strait of Hormuz.
- Bank of Canada is expected to keep its policy rate at 2.25% at the April 29 meeting, despite the inflation uptick.
- Doug Porter of Bank of Montreal said core inflation fell to 2.2% annual, better than expected, while warning about the gas‑price shock.
- Iran's brief closure of the Strait of Hormuz earlier in the month throttled crude deliveries, fueling the gas‑price surge.
Why it matters: Canadian drivers face a 21.2% surge at the pump, eroding disposable income, while the Bank of Canada must decide whether to keep its 2.25% rate, influencing mortgage costs and consumer spending.
