Canadian price inflation accelerated in march at the fastest pace in over 2 years, pushed especially by increases in gas and food prices.
Statistics Canada announced today that the country's annual inflation rate surged by 1.1 points to 3.3% last month, the first time the rate has topped 3% since september 2008, on the eve of the recession.
But few expected the leap would be so high. Only last week, the bank of canada predicted inflation would reach 3% sometime this spring - that target has now been already surpassed, and many be once again in april if the price of oil does not moderate.
The bank has a mandate to keep inflation within a 1%- 3% range, and as close to 2% as possible.
The March report, if it is followed up by outsized gains in the next two months, could convince the bank that it needs to start tightening monetary policy soon, however.