Inflation in Canada: February saw largest deceleration since April 2020

OTTAWA –

The annual tempo of inflation cooled in February because it posted its largest deceleration since April 2020.

Statistics Canada stated Tuesday its shopper value index in February was up 5.2 per cent in contrast with a yr earlier.

The studying in contrast with an annual inflation fee of 5.9 per cent in January and was the bottom annual inflation fee since January 2022 when it was 5.1 per cent.

Statistics Canada famous that the decline was because of a steep month-to-month enhance in costs in February 2022 when the worldwide economic system was considerably affected by the Russian invasion of Ukraine.

Despite the general cooling, grocery costs remained elevated and outpaced general inflation.

Prices for meals bought from shops in February had been up 10.6 per cent in contrast with a yr in the past, the seventh consecutive month of double-digit will increase.

Meanwhile, power costs had been down 0.6 per cent yr over yr as gasoline costs fell 4.7 per cent in contrast with a yr in the past when costs started to rise because of the Russian invasion of Ukraine. It was the primary yearly decline for gasoline costs since January 2021.

Excluding meals and power, Statistics Canada stated costs in February had been up 4.8 per cent in contrast with a yr in the past, following a 4.9 per cent year-over-year achieve in January.

The annual inflation fee peaked at 8.1 per cent in June 2022, however has been declining.

The Bank of Canada, which is working to convey general inflation again to its goal of two per cent, left its key rate of interest goal unchanged earlier this month at 4.5 per cent.

It was the primary time the central financial institution saved its key coverage fee on maintain because it started elevating it final yr in an effort to chill rising costs.

The common of the three core measures of inflation which can be intently watched by the Bank of Canada eased to five.37 per cent in February in contrast with 5.57 per cent in January.

Here’s what occurred within the provinces (earlier month in brackets):

• 
  Newfoundland and Labrador: 5.4 per cent (5.5)
• 
  Prince Edward Island: 6.7 per cent (7.0)
• 
  Nova Scotia: 6.5 per cent (6.9)
• 
  New Brunswick: 5.9 per cent (6.5)
• 
  Quebec: 5.6 per cent (6.2)
• 
  Ontario: 5.1 per cent (5.6)
• 
  Manitoba: 6.4 per cent (6.9)
• 
  Saskatchewan: 5.7 per cent (6.0)
• 
  Alberta: 3.6 per cent (5.0)
• 
  British Columbia: 6.2 per cent (6.2)

The company additionally launched charges for main cities, however cautioned that figures could have fluctuated broadly as a result of they’re primarily based on small statistical samples (earlier month in brackets):

• 
  St. John’s, N.L.: 5.5 per cent (5.5)
• 
  Charlottetown-Summerside: 7.4 per cent (7.7)
• 
  Halifax: 6.3 per cent (6.7)
• 
  Saint John, N.B.: 6.0 per cent (6.5)
• 
  Quebec City: 5.9 per cent (6.4)
• 
  Montreal: 6.3 per cent (6.6)
• 
  Ottawa: 5.4 per cent (6.0)
• 
  Toronto: 5.1 per cent (5.7)
• 
  Thunder Bay, Ont.: 4.4 per cent (5.0)
• 
  Winnipeg: 6.7 per cent (7.1)
• 
  Regina: 5.5 per cent (6.0)
• 
  Saskatoon: 6.2 per cent (6.1)
• 
  Edmonton: 2.7 per cent (4.3)
• 
  Calgary: 3.9 per cent (5.5)
• 
  Vancouver: 5.9 per cent (5.9)
• 
  Victoria: 6.0 per cent (6.5)
• 
  Whitehorse: 7.0 per cent (7.9)
• 
  Yellowknife: 5.8 per cent (6.3)
• 
  Iqaluit: 3.1 per cent (3.4)

This report by The Canadian Press was first revealed March 21, 2023.