Canada: Inflation continues to rise in February
March 23, 2012
In February, consumer prices increased a seasonally adjusted 0.1% over the previous month, which was below the 0.5% increase observed in January. The monthly price rise mainly reflected higher prices in the transportation category, in particular those of fuel. Annual headline inflation inched up from 2.5% in January to 2.6% in February, which came in below market expectations of a 2.7% increase. Currently, inflation remains within the Central Bank's 2.0% 1.0 percentage point tolerance margin. Annual core inflation, which excludes volatile items such as gasoline and fresh food, edged up from 2.1% in January to 2.3% in February. The Bank of Canada expects headline inflation to average 1.8% in 2012 and 1.9% in 2013.