Canada: Inflation stable in February
March 20, 2015
In February, consumer prices rose a seasonally-adjusted 0.2% over the previous month, which contrasted January’s 0.2% drop. According to Statistics Canada, the increase came on the back of higher prices for transportation.
Annual headline inflation in February was stable at January’s 1.0%, thus remaining at the lowest level in over a year. As a result, inflation is at the lower bound of the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 2.0%. Annual average inflation in February was also stable at January’s 1.9%. Annual core inflation, which excludes volatile items such as gasoline and fresh food, inched down from 2.2% in January to 2.1% in February, thus marking the lowest rate in six months.