Tuesday, October 21st9.5°C
23836
23671

Loonie advances as rising energy prices send March inflation higher

TORONTO - The Canadian dollar closed higher Thursday amid data showing inflation coming in slightly higher than expected.

The loonie was up 0.04 of a cent to 90.8 cents US as Statistics Canada reported that the consumer price index rose 0.6 per cent in March from the previous month, higher than the 0.4 per cent reading that economists had expected. The rise was mostly due to a three per cent increase in gasoline prices from February.

Excluding volatile items such as food and energy, the core rate of inflation rose 0.3 per cent, which was in line with expectations.

Year over year, the consumer price index was up 1.5 per cent, up from 1.1 per cent in February.

"Looking ahead, gasoline and natural gas prices are likely to put further pressure on the headline rate in April, but it will be a somewhat slower climb to get core prices to two per cent," said Avery Shenfeld, chief economist at CIBC World Markets.

The dollar had slid 1/3 of a cent Wednesday in the wake of the Bank of Canada's announcement that it was leaving its key rate at one per cent, where it's been since September 2010. The bank also lowered its forecast for first-quarter growth this year to 1.5 per cent from 2.5 per cent, but attributed the downgrade mostly to temporary impacts of a unusually severe winter.

But the loonie rebounded Thursday as the "higher than expected Canadian inflation has shifted expectations back toward a firmly neutral from the neutral-dovish reaction to . . . (Wednesday's) Bank of Canada statement," said Colin Cieszynski, senior market analyst at CMC Markets.

Commodities were mixed as the May crude contract on the New York Mercantile Exchange rose 54 cents to US$104.30 a barrel.

May copper rose two cents to US$3.05 a pound while June gold bullion declined $9.60 to US$1,293.90 an ounce.

The Canadian Press


Read more Business News

21297


Recent Trending




Today's Market
S&P TSX14337.77+110.09
S&P CDNX811.351.22
DJIA16399.6719.26
Nasdaq4316.075+57.637
S&P 5001904.01+17.25
CDN Dollar0.8889+0.003
Gold1249.80+5.1001
Oil81.58+0.20
Lumber330.40-0.50
Natural Gas3.657-0.013

 
Okanagan Companies
Pacific Safety0.10-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.12+0.01
Cantex0.055-0.025
Anavex Life Sciences0.191+0.001
Metalex Ventures0.050.00
Russel Metals32.28-0.07
Copper Mountain Mining1.99+0.05
Colorado Resources0.15+0.005
ReliaBrand Inc0.0111-0.0019
Sunrise Resources Ltd0.060.00
Mission Ready Services0.450.00

 



23021

FEATURED Property
20250042200 Sandstone Drive
4 bedrooms 3 baths
$585,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_








Member of BC Press Council


23832