馃嚦馃嚞NigeriaWest Africa
Canada's inflation reaches 29-month high in May due to Iran conflict
via Punch Nigeria1 min read
Canada's year-on-year inflation reached 3.2 percent in May, a 29-month high, primarily driven by elevated gasoline prices resulting from the Iran conflict. Statistics Canada reported that the closure of the Strait of Hormuz contributed to a 33.2 percent increase in pump prices compared to the previous year. Despite this, experts suggest that the overall inflation picture does not indicate an immediate widespread rise in consumer costs. Senior TD Bank economist Leslie Preston noted that oil prices have decreased since a tentative peace deal between Iran and the US, and gasoline prices are following this trend, leading to an expectation that May will be the peak for headline inflation this year. The Bank of Canada has maintained its core interest rate at 2.25 for five consecutive announcements, balancing the need to stimulate an economy affected by US tariffs with inflationary pressures from the Middle East.
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