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Ottawa, Mar 24 (Canadian-Media): Canada's annual inflation rate had jumped to 2.2. percent in February, from 1.7 percent in January, Statistics Canada reported on Friday.
Statistics Canada Image
Rise in the cost of living by 2.2 percent annually, its highest level since 2014 is due mainly to the sharp increases in the price of energy, gasoline and food at the restaurants, mortgage interest costs by 5.3 percent, 12.6 percent and 4 and 2.3 percent respectively in the past 12 months.
"That's a big swing from recent years, when falling borrowing costs were regularly holding down inflation," Bank of Montreal economist Doug Porter said. "Clearly, the pendulum has swung on that one."
On the other hand there had been decrease in price for electricity by 4.7 per cent, traveller accommodation by 4.8 per cent, digital computing equipment and devices by 5.9 percent, video equipment by 10.1 per cent and furniture by 1.8 per cent in the past 12 months.
Atlantic Canada experienced the highest inflation rate across the country in February.
"Growth was strongest in the Atlantic provinces, led by higher prices for food purchased from stores," the data agency said in a release.
James Marple, Toronto-Dominion Bank economist believed that recent minimum wage hikes was a factor in the increase in restaurant meal prices.
But Maple reportedly thinks the Bank of Canada will be paying close attention to Friday's inflation report.
"After several months below two per cent, inflation pressures have picked up and have moved on top of the Bank of Canada's target," Marple said. "Today's data does create the risk that the Bank of Canada moves sooner, but with downside risks to the economic outlook still elevated, this summer remains most likely to see the next policy interest rate hike."
(Reporting by Asha Bajaj)
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Washington, U.S., Mar 24 (Canadian-Media): Trade officials in United States (U.S.) were ordered by U.S. President Donald Trump to come up in two weeks time with a list of Chinese-made products on which to put tariffs, media reports said.
Donald Trump/Facebook page
The Trump administration reportedly claimed that China does not trade fairly and had a $370 billion trade surplus in goods with the U.S., and that it had cost American jobs.
Reportedly China would certainly retaliate on U.S. exports.
"China will not sit idly by while legitimate rights and interests are hurt. We must take all necessary measures to firmly defend our rights and interests," China's Commerce Ministry was reported to state.
This would mean higher prices for consumers, and possible bad news for American businesses that export to China.
the new tariffs on steel and aluminum, announced by Trump earlier this week reportedly came into effect on Mar 23, 2018.
China reportedly announced that list of U.S. goods (including pork and aluminum pipe) might be hit with tariffs in response.
A reportedly sharp reaction was seen in the stock markets, which started reacting even before the news came out.
The Dow Jones Industrial Average was off by 724 points (almost three percent); the technology-heavy Nasdaq was off by about 2.4 percent.
(Reporting by Asha Bajaj)
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Geneva, Mar 3 (Canadian-Media): As a result of United States (US) President Donald Trump 's "trade war" talk, a global sell-off in stocks came back around to the US in morning trading Friday, media reports said.
A "trade war is in no one's interests," said Roberto Azevedo, head of the World Trade Organization.
Roberto Azevedo/Facebook Page
Trump took to Twitter to defend his promise from Thursday to impose stiff tariffs on imports of steel and aluminum, which worried investors about increasing retaliation by other countries that would damage the global economy.
Trump stated that the US is losing on trade reportedly with virtually every country and that "trade wars are good" and "easy to win."
But Investors felt differently as markets tumbled in Asia, where China expressed "grave concern," and spread to Europe too.
The president of the European Union's governing body reportedly promised retaliation if Trump follows through.
When markets opened in the U.S. on Thursday, the Dow Jones industrials and S&P 500 followed steep declines.
A trade war would threaten the optimism of investors that the strengthening global economy would lead to higher corporate profits.
Big U.S. companies, heavily dependent on global trade, reportedly were optimistic of investors in U.S. stocks which had only recently begun feeling the full benefit.
According to official reports, inflation has been low in the years following the Great Recession, could lead to higher inflation If Trump follows through on his tariff promise.
Federal Reserve -- the central banking system of the United States created in 1913, with the enactment of the Federal Reserve Act -- would reportedly be forced to raise short-term rates more quickly and severely than expected by investors.
That could easily upset markets, which had been enjoying a remarkably smooth ride last year.
In the wake of declines in energy, financial and industrial shares and oil prices combined with global investors' concern about a trade war by Trump, Canada's main stock index reportedly fell to a two-week low on Friday..
Trump unveiled the tariffs on Thursday but was not clear if these would apply to Canada, which is the largest supplier of both steel and aluminum to US.
Canada's economy could also be impacted by talks with the US and Mexico to overhaul the North American Free Trade Agreement (NAFTA) as Canada sends 75 percent of its exports to US.
(Reporting by Asha Bajaj)