Canada's inflation rate projected to rise to 3.1% in February due to higher gasoline prices, potentially impacting Bank of Canada's interest rate plans.

Economists expect Canada's inflation rate to rise to 3.1% in February, driven by higher gasoline prices. This could complicate the Bank of Canada's plans to cut its policy interest rate in the coming months, as it awaits clearer evidence that inflation is returning to its 2% target. The Bank of Canada held its key interest rate at 5% since July, and its last projection suggested inflation might reach the target in 2025.

March 18, 2024
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