Statistics Canada announced Tuesday that Canada's inflation rate rose to 3.3 percent in March, the highest since September 2008.

The result is much higher than economists' expectation of 2.8 percent and last month's 2.2 percent.

Energy prices surged 12.8 percent in March year-on-year, with gasoline prices soaring by 18.9 percent.

Excluding energy, the Consumer Price Index (CPI) rose 2.4 percent in the 12 months to March, following a 1.4 percent increase in February.

On a year-over-year basis, prices increased in all eight components the agency tracks. The largest increase occurred in the transportation component, where prices rose 6.6 percent, after advancing 5.1 percent in the previous month. At the meantime, food prices rose 3.3 percent, while shelter costs advanced 2.4 percent.

Prices for clothing and footwear was up 0.9 percent, the first year-over-year increase since November 2009. The advance follows a 2.0 percent decline in February.

The Bank of Canada's core index, which strips out more volatile sectors, was 1.7 percent higher in the 12 months to March, following a 0.9 percent rise in February.

On a seasonally adjusted monthly basis, consumer prices rose 0. 8 percent from February to March, the largest increase since October 2010. And the core index increased 0.5 percent, the largest rise since November 2008.

As currency traders speculated rising inflation will increase the odds the Central Bank's rate hike in July, the Canadian dollar Tuesday made its biggest intraday gain since February 1, up 0.81 of a U.S. cent at 104.52 U.S. cents at midday.

VietNamNet/Xinhuanet