Oh, Canada… growth is stagnating, housing bubbles imploding, and now inflation is surging…

Canadian Consumer prices surge 2.2% YoY (well above expectations of +1.9% and January’s +1.7% YoY)

Core prices – which exclude more volatile items like energy and are considered a gauge of inflation pressures – inched higher for a fifth month to 2.03 percent, which is the fastest since 2012.

Statistics Canada cited higher prices for gasoline, cars, and mortgage interest costs as main contributors to annual inflation. The minimum wage increases in Ontario also seem to have had an impact, with food purchased from restaurants pushing up nationwide prices by 4 percent from a year ago.

Faster-than-expected inflation could add pressure on the Bank of Canada – which has kept the expansion going with low interest rates – to keep hiking borrowing costs to more normal levels.

And the Loonie is surging…