Investing.com - The overall rate of inflation in Canada picked up in March, Statistics Canada said on Friday. The consumer price index rose 2.3% last month, compared with the same month a year earlier.
Prices rose by 0.3% from a month earlier.
Economists had expected annual inflation to increase by 2.4% and monthly inflation to rise by 0.4%.
Core inflation, which excludes gasoline, was up 1.4% from a year earlier and rose by 0.2% from the previous month.
The Bank of Canada aims to keep inflation at 2%, the midpoint of a target range of 1% to 3% over the medium term.
The Canadian central bank kept rates unchanged at 1.25% on Wednesday.
“Higher interest rates will be warranted over time, although some monetary policy accommodation will still be needed to keep inflation on target,” it said.
The bank's next scheduled announcement is May 30 and markets see about a 50% of a hike taken place at that time.