Canada: Inflation increases marginally in February
March 17, 2021
Consumer prices increased a seasonally-adjusted 0.14% in February over the previous month, which was a softer increase than January's 0.43% rise. The reading was driven by moderating price pressures for transportation and food. In addition, prices for recreation and culture dropped.
Inflation came in at 1.1% in February, up from January’s 1.0%. Meanwhile, the trend pointed down slightly, with annual average inflation coming in at 0.5% in February (January: 0.6%). Core inflation fell to 1.2% from the previous month's 1.6%.
Commenting on February’s print, Benoit P. Durocher, a senior Economist at Desjardins, noted:
“Despite some blips, the price trend should stay under control over the next few months. However, the risks seem to have a more upward orientation. This is nothing overly concerning for the BoC, but it will certainly take this into account in the upcoming adjustment to its monetary policy, particularly its quantitative purchase program.”