The Globe and Mail reports in its Tuesday, April 21, edition that Canada's annual inflation rate rose to 2.4 per cent in March from 1.8 per cent in February, according to Statistics Canada. The Globe's Maia Tustonic reports that it was, however, below analysts' expectations of 2.6 per cent. Prices at the pump surged by 21.2 per cent in March from February. Excluding gas, the CPI rose by an annual 2.2 per cent in March, compared with 2.4 per cent in February. BMO economist Doug Porter says: "It could have been worse. The picture for underlying inflation was a bit better than expected, and continues the recent pattern of steadily moderating core inflation trends." Monday's report did little to sway predictions for the next interest-rate setting by the Bank of Canada, which is widely expected to hold rates at 2.25 per cent at its April 29 meeting. Interest-rate swaps were pricing in one quarter-point hike by the end of the year as of Monday, similar to odds on Friday. Governor Tiff Macklem has said the BOC is prepared to raise interest rates if Iran war shock feeds into a broader set of prices and pushes up inflation expectations. But he has generally played down the risk of this happening in the near term.