The pass through of higher commodity prices was behind the jump in CPI inflation, to
3.3% in March from 2.2% in February. Considering the temporary nature of these
supply shocks, however, we still don't anticipate any change in monetary policy this
year. That said, given that core inflation also climbed to 1.7%, from 0.9%, we do
acknowledge a higher risk than before that the Bank of Canada might raise interest
rates a notch or two.
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