Annual pace of inflation lowers in February, declining food prices soften impact
OTTAWA — The annual pace of inflation in Canada ticked lower in February as higher prices for gasoline were offset in part by declining costs for fresh fruit and vegetables.
Statistics Canada said Friday the consumer price index rose 2.0 per cent on a year-over-year basis in February. The move compared with a 2.1 per cent increase in January. Economists had expected it to rise 2.1 per cent in February as well.
The inflation report follows several recent economic data points that have been stronger than expected including retail, wholesale and manufacturing sales, trade and job creation.
Bank of Montreal chief economist Doug Porter said the relative stability in headline inflation and mild readings for core inflation provide a dovish counterpoint to the recent upbeat economic indicators for the Bank of Canada.