In view of the remarkable rise in the inflation and the value of the dollar the analysts have forecast a rise in the interest rates of the Bank of Canada after May 2010.

According to the data provided by Statistics Canada, the country’s inflation has witnessed an year-on-year rise in the inflation.

According to Statscan the consumer prices surged by 1.6 per cent in February, which was slower than rate of growth in the previous month. Meanwhile fuel rose to 2.1 per cent in February.

Some of the economists have explained that as the Bank of Canada is driven by the core rate, the policy makers wouldn’t have imagined that the core rate would touch the central bank's 2-per-cent target by the end of 2011.

“We're progressively leaving the recovery phase”, said Yanick Desnoyers, Assistant Chief Economist at National Bank Financial.

With this rise in the interest rates Canada will become the first in G7 to raise the rates since the global economic meltdown. On contrary to Canada, U. S. has not indicated any plans of raising the rates in the near future.