The USD/CAD currency pair is falling in the middle of the trading week after Canada’s inflation soared once again in the month of March, highlighting that this inflationary environment is being found worldwide.

According to Statistics Canada, the annual inflation rate surged to 6.7% in March, topping the market estimate of 6.1%. This is also up from the 5.7% jump in February. On a month-over-month basis, the consumer price index (CPI) rose 1.4%.

The core inflation rate, which strips the volatile food and energy sectors, climbed 5.5% year-over-year in March. The monthly core inflation rate swelled 1% last month, doubling the market forecast of 0.5%.

Financial experts say that the inflation rate is a lot higher than what is being reported since the reading does not count housing prices and used automobiles.

On Friday, the producer price index (PPI) will be reported, and economists are anticipating a 19% year-over-year increase.

In other economic data midweek, the new housing price index picked up 1.2% in March, up from the 1.1% in the previous month. This comes one day after the Canada Mortgage and Housing Corporation (CMHC) reported 246,200 housing starts in March, down from 250,200 in February.

Later this week, retail sales, manufacturing sales, and wholesale sales data will be released. The market is forecasting a decrease in all three of these data readings.

Energy commodities were higher, which is good news for the Canadian economy since it maintains a current account deficit. Since crude oil and gas remain the country’s top shipments, any significant price change can have a positive impact on the loonie and the broader economy.

The Canadian bond market was mixed on Wednesday, with the benchmark 10-year yield down 0.022% to 2.802%. The one-year bill rose 0.04%, while the 30-year bond dropped 0.018% to 2.758%.

The USD/CAD currency pair tumbled 0.71% to 1.2532, from an opening of 1.2621, at 12:41 GMT on Wednesday. The EUR/CAD fell 0.35% to 1.3568, from an opening of 1.3607.