Bank of Canada ignores C$-tied rise in March core inflation

April 17, 2015 11:36 PM

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WASHINGTON, April 17 (Reuters) - The Bank of Canada will ignore that part of the surge in March core inflation which is due to the fall in the Canadian dollar, Governor Stephen Poloz said on Friday, adding that the growing output gap was exerting downward pressure on inflation.

Canada's core inflation rose to 2.4 percent in March from 2.1 percent in February, putting it well above the central bank's 2 percent target. Poloz, however, said the jump was primarily due to higher prices for cars, which are sensitive to exchange rates.

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