Bank of Canada's Carney: data show higher inflation

Thu May 22, 2:28 PM
NEW YORK (Reuters) - Recent economic data has shown a sudden rise in Canadian inflation, Bank of Canada Governor Mark Carney said on Thursday.
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(Reuters)

NEW YORK (Reuters) - Recent economic data has shown a sudden rise in Canadian inflation, Bank of Canada Governor Mark Carney said on Thursday.

Carney said he has "noted a recent spike in inflation data" in answer to a question following a speech to the New York Association of Business Economics.

Canada's annual inflation rate surged to 1.7 percent in April, fanning market speculation that the central bank would pause in its interest rate-cutting cycle next month.

The Bank of Canada has slashed its key overnight lending rate by 150 basis points to 3 percent since last December to shield the economy from a sharp growth slowdown in the United State, where it sells three-quarters of its exports.

(Reporting by Lucia Mutikani; Editing by James Dalgleish)