The annual inflation rate in Canada jumped by 2.1 per cent in January, it’s highest level in over two years.
It’s right at tolerance levels for the Bank of Canada, where inflation between 2 per cent and 3 per cent raises warning flags regarding interest rates.
There is literally no chance of a rate hike now, or even into the foreseeable future.
However, it has not gone unnoticed that gasoline prices have jumped over 20 per cent year over year from 2016, the largest move since September 2011, as oil prices continue to hold in mid $50 per barrel range.
And, no surprise to renters, Canadians paid 2.4 per cent more for shelter.
Grocery wars continue to be waged across the country, as food prices dropped 2.1 per cent from January 2016.
All three measures that the Bank of Canada tracks shows inflation at about 2 per cent, which is not alarming, but is sending out a cautionary note.