Canada: Inflation eases in February
March 18, 2016
In February, seasonally-adjusted consumer prices recorded a 0.2% decrease over the previous month, which contrasted January’s 0.2% increase and marked the lowest figure in 10 months. According to Statistics Canada, the decrease was driven by a sharp decline in prices for transportation, followed by declines in prices for clothing and footwear.
Inflation was 1.4% in February, down from 2.0% in January. February’s result was slightly below the 1.5% expected by the markets. Inflation has eased from January’s reading, bringing the figure back down below the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in February mirrored January’s tally of 1.2%. Core inflation, which excludes volatile items such as gasoline and fresh food, eased slightly from 2.0% in January to 1.9% in February.
Author: Robert Hill, Economist