“The Bank of Canada had communicated all along any uptick in inflation is transitory, it’s just energy and food, don’t worry about it,” Greg Anderson, head of global foreign exchange strategy at Bank of Montreal, said in the article. “Well, here it is, CPI, stripped of energy and food, and it’s surging higher. It is untenable, they’re going to have to change their forecasts massively.”

Meanwhile, the iShares MSCI Canada ETF (NYSEArca: EWC) has increased 9.2% year-to-date on the strengthening Canadian economy. Since EWC is exposed to currency risks, the fund has also benefited from a strengthening loonie, which translates to a higher U.S.-dollar return. [Oh Canada: Energy Rally Lifts Country’s ETFs]

CurrencyShares Canadian Dollar Trust

For more information on the Canadian currency, visit our Canadian dollar category.

Max Chen contributed to this article.