Record surge in imports signals supply chokehold stoking inflation is loosening — via financialpost inflation economy
that imports jumped 7.7 per cent in March from February, the second consecutive gain. The biggest contributor to the increase was a 40-per-cent surge in the value of oil imports, as prices skyrocketed in the aftermath of Russia’s invasion of Ukraine, and Canadian importers sought to stockpile crude from the U.S., Saudi Arabia, and Nigeria.
But Statistics Canada’s tally also showed big increases of imports of automobiles and parts, suggesting the global chip shortage that had slowed North American automobile production was becoming a gentler headwind for carmakers. Imports from countries other than the U.S. rose to a record, led by a 29-per-cent increase in shipments of computers, cellphones, industrial equipment, and consumer goods from China.
A more fluid supply of goods would ease inflationary pressures that have pushed year-over-year increases in the consumer price index to their highest levels in more than three decades. The Bank of Canada accelerated its path to higher interest rates last month, lifting its benchmark interest rate a half point after the latest update of its economic outlook showed that demand was running well ahead of supply.
Governor Tiff Macklem told lawmakers that he remained convinced that supply constraints would ease, but acknowledged that the central bank misjudged how long the disruptions would last. So, any evidence that global trade is getting back to normal is welcome. “The easing of supply chain issues could be a sign of better things to come for auto production and the manufacturing sector,” Benjamin Reitzes, an economist at Bank of Montreal, said in a note.Article content
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Record surge in imports signals supply chokehold stoking inflation is looseningRecord surge in imports signals supply chokehold stoking inflation is loosening — via financialpost inflation economy
Read more »
Canada posts $2.5B trade surplus for March as imports and exports hit record highsStatistics Canada says the country's merchandise trade surplus was $2.5 billion in March as both imports and exports climbed to record highs.
Read more »
Met Gala brings in a record US$17.4 million, museum saysAll that 'gilded glamour' brought in some real gold. This year's Met Gala earned a record US$17.4 million, museum officials said Tuesday.
Read more »
MEG Energy reports record quarter as high prices boost profitsThe Calgary-based oil sands developer says it earned $1.15 per diluted share in the first quarter, compared with a loss of six cents per share or $17-million a year earlier
Read more »
CFA sets the record straight on agriculture’s role in carbon emissions | National NewswatchNational Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
Read more »
Concern about flood risks in Yukon after cold April, record snowpacksThe senior hydrologist with Yukon's Department of Environment says there is a concern for flooding with record-high snowpacks in many of the basins the territory monitors.
Read more »