Canadian inflation quickened in May on increases across all eight major components, giving the Bank of Canada plenty of scope to hold interest rates steady.

The consumer price index jumped 2.4 per cent from a year earlier, compared with 2 per cent in April and versus a median economist forecast of 2.1 per cent, Statistics Canada said Wednesday from Ottawa. It was the highest annual rate since October, boosted by increases in food and durable goods prices.

Core inflation, closely watched by policy makers, surged, with the average of the three key measures rising to 2.07 per cent, the highest since February 2012.

Canada’s currency climbed after the report, rising as much as 0.3 per cent against the U.S. dollar. It was trading at 74.94 US cents at 8:33 a.m. in Toronto. 

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