Canada inflation rises to 2.8%

Canada's annual inflation rate rose to 2.8% in April, driven primarily by a nearly 29% surge in gasoline prices.

Statistics Canada reported that while headline inflation accelerated, core measures of price growth remained relatively contained.

Economists noted that the energy shock caused by the war in Iran is the primary factor pushing costs higher at the pump.

The data suggests that the Bank of Canada may face a complex decision regarding interest rates as it balances rising energy costs with cooling underlying inflation.