Monday, August 31st16.6°C
27214
26753

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

26744


Recent Trending




Today's Market
S&P TSX13865.07+98.40
S&P CDNX555.67+10.10
DJIA16643.01-11.76
Nasdaq4828.32+15.62
S&P 5001988.87+1.21
CDN Dollar0.7534-0.0033
Gold1119.50-5.10
Oil44.00-1.22
Lumber237.20-9.70
Natural Gas2.654-0.061

 
Okanagan Companies
Pacific Safety0.165+0.005
Knighthawk0.010.00
QHR Technologies Inc1.29+0.05
Cantex0.04-0.01
Anavex Life Sciences1.34-0.05
Metalex Ventures0.055+0.000
Russel Metals21.41+0.43
Copper Mountain Mining0.64-0.01
Colorado Resources0.075-0.005
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.025+0.005
Mission Ready Services0.07+0.01
Decisive Dividend Corp2.75+0.14

 



27314

FEATURED Property
221584322421 Bridgeman Road
$1,365,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_





27298


Member of BC Press Council


27438