Gas Prices Push Consumer Inflation Higher in Canada
Consumer inflation registered another sizable increase in May, pushed higher by soaring gasoline prices. Core inflation excluding food and energy was also worse than expected but analysts took comfort in the fact that the jump came from special factors.
The Consumer Price Index rose 0.4 % in May after an even bigger 0.6 % rise in April. Gasoline prices jumped by 4.9 % and have been soaring this year at an annual rate of 69.4 %, as motorists contend with pump prices above $0.9 per gallon in many parts of the country.
Excluding energy and food, core inflation rose by a larger-than-expected 0.3 %. That increase was certain to get attention at the Federal Reserve, where Chairman Ben Bernanke last week said a recent uptick in core inflation has Fed officials concerned.
Private economists said the advance made another rate hike at the Fed's June 28-29 meeting a virtual certainty.
The Consumer Price Index rose 0.4 % in May after an even bigger 0.6 % rise in April. Gasoline prices jumped by 4.9 % and have been soaring this year at an annual rate of 69.4 %, as motorists contend with pump prices above $0.9 per gallon in many parts of the country.
Excluding energy and food, core inflation rose by a larger-than-expected 0.3 %. That increase was certain to get attention at the Federal Reserve, where Chairman Ben Bernanke last week said a recent uptick in core inflation has Fed officials concerned.
Private economists said the advance made another rate hike at the Fed's June 28-29 meeting a virtual certainty.
posted by Ottawa Gas Prices | 11:14 AM
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