Market News
Canada's inflation jumps to eight-month high as sales tax break ends - REUTERS
Summary
- Inflation in February was at 2.6% from 1.9% in January
- On a month-on-month basis, inflation shot up to 1.1>#/li###
- Core inflation measures inch up to 2.9% in February
- Markets bet 62% chance of pause in April rate cut
OTTAWA, March 18 (Reuters) - Canada's annual inflation rate showed a surprise jump to 2.6% in February, surpassing expectations as a sales tax break that ended in the middle of last month pushed prices higher amid an already broad-based increase, data showed on Tuesday.
Higher-than-expected inflation highlights the difficult position Canada's economy is in as U.S. tariffs take effect. The central bank had cut interest rates last week amid economic uncertainty.
