Canada’s annual inflation rate accelerated more than expected in January, data from Statistics Canada showed on Wednesday, and could continue to rise in coming months compared with the low levels reached a year ago during the first COVID-19 lockdowns, Reuters reported. Canada’s inflation rate accelerated to 1.0% in January on higher durable good and gasoline prices, up from a year-on-year increase of 0.7% in December, and beating analyst expectations of 0.9%. Before easing again, the annual rate could test 3% in April or May due to a combination of higher commodity prices and the statistical comparison to the period of last year’s shutdowns, analysts said. “In the next few months, with the run-up in oil prices in particular ... and when we compare ourselves to what happened a year ago, we are going to get some very big inflation numbers,” said Doug Porter, chief economist at BMO Capital Markets. “So I think this is just an opening salvo in terms of what we are about to see for headline inflation.” But even if inflation were to temporarily top 3%, the upper threshold of the Bank of Canada’s control range for its 2% target, the Bank would be unlikely to change its policy stance, said analysts. Read more.