The Globe and Mail reports in its Thursday, May 16, edition that Canada's annual inflation rate edged up to 2 per cent in April from 1.9 per cent in March, driven in part by a carbon levy that pushed up gasoline prices in six provinces, Statistics Canada said on Wednesday.
A Reuters dispatch to The Globe reports that prices gained 0.4 per cent from the previous month, led by a 10-per-cent rise in gasoline prices, Statscan said, in line with a Reuters survey of analysts.
The annual rate rose to the Bank of Canada's 2-per-cent target for the first time since December.
A carbon tax was slapped on four provinces in April because they had not followed federal guidelines to create their own carbon pricing plan.
Two other provinces also increased their levies on carbon in April.
Several provincial conservative leaders are challenging the imposition of the federal levy in court ahead of the
October general election. Reuters says money markets are factoring in a slightly higher chance of an interest-rate cut by year end at more than 40 per cent.
BMO economist Doug Porte says, "I'd have to agree with market that there's a slightly higher chance of them next trimming rates than hiking."
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