Statistics Canada reports that consumer inflation rose to 2.8% in April, up from 2.4% in March. The primary driver was a significant spike in gas prices.
This increase comes amid global oil market uncertainty following the war in Iran and the closure of the Strait of Hormuz. Canadian gas prices are nearing all-time highs.
This higher inflation reading could pressure the Bank of Canada to raise its key interest rate from the current 2.25%, as the central bank's target range for CPI is between one and three percent.