Statistics
Canada reported on Tuesday the country’s consumer price index (CPI) climbed
1.1 per cent m-o-m in February,
following an unrevised 0.1
per cent m-o-m uptick in the previous month. That marked the strongest monthly gain
in CPI since May 2022 (+1.4 per
cent m-o-m).
On a y-o-y
basis, Canada’s inflation rate jumped by 2.6 per cent last month, sharply
accelerating from an unrevised 1.9 per cent in January. That represented the highest annual inflation rate since June 2024 (+2.7 per cent).
Economists had predicted
the CPI would increase 0.6 per cent m-o-m and 2.2 per cent y-o-y in February.
According to
the report, the February advance in the headline annual inflation was primarily
due to the end of the goods and services tax (GST)/harmonized sales tax (HST)
break partway through the month, contributing notable upward pressure to
prices for eligible products. At the same time, slower price growth for
gasoline prices (+5.1 per cent y-o-y) moderated the all-items CPI acceleration.
Meanwhile, the
monthly advance in the headline CPI reflected increases in all 8 major items,
led by recreation, education and reading (+3.4 per cent m-o-m), food (+1.9 per
cent m-o-m), and clothing and footwear (+1.6 per cent m-o-m).
The trimmed-mean CPI - the preferred measure of core
inflation of the Bank of Canada (BoC) - soared 2.9 per cent y-o-y
in February, following an unrevised 2.7 per cent
y-o-y surge in January.
That was the strongest annual advance since June 2024 (+2.9 per cent y-o-y). Economists
had anticipated a gain of 2.8 per cent y-o-y.