Canada column for Sunday, April 19/15
THE CANADIAN REPORT
(c) By Jim Fox
Canada’s dollar has jumped by three cents U.S. as the economy reacts to higher crude oil prices.
As a major oil-producing nation, Canada’s dollar topped 82 cents U.S. as worldwide oil prices moved higher after OPEC predicted the boom in U.S. crude production is on the wane.
The International Energy Agency forecast a slowdown later this year as oil reached $57 a barrel.
Lower oil prices have led to reduced production in Canada and the U.S. Energy Information Administration said fewer rigs will be in operation there next month.
Statistics Canada said the annual inflation rate unexpectedly rose to 1.2 percent last month with higher food prices and a moderating decline in gasoline prices.
Economists suggest inflation’s increase from 1.0 percent is unlikely to cause the central bank to make any change in the key bank interest rate for perhaps the rest of the year.
The Bank of Canada decided on Wednesday not to change rates after a surprise 0.25-percent drop to 0.75 percent in January.