Canada inflation jumps to 2.4% on gas surge

Canada's annual inflation rate accelerated to 2.4% in March, up from 1.8% in February, marking the highest level since the fourth quarter of 2025. The primary driver was a sharp 21.2% year-over-year increase in gasoline prices, which Statistics Canada attributed to Middle East conflict disrupting shipping through the Strait of Hormuz. The surge in energy prices added 0.7 percentage points to the headline inflation figure, with oil prices up 40% from a year ago. Core inflation, which excludes volatile items like energy, remained stable at 2.3%, and the Bank of Canada has maintained its overnight interest rate at 2.25%.