Canada Inflation Rate Slows in February


Canadian annual inflation rate decelerated for the first time in 4 months to 1.1 percent, after hitting a 19-month high 1.5 percent in January. The slowdown is mainly due to a 1.3 percent fall in gasoline prices, following a 4.6 percent increase in January.

Shelter costs advanced 2.2 percent on a year-over-year basis after rising 2.1 percent the previous month. Consumers paid more for electricity (+4.7 percent), property taxes (+3.2 percent) and rent (+1.5 percent) in February compared with the same month a year earlier.
 
Food prices rose 1.1 percent, matching the increase in January. Prices for food purchased from stores increased 1.0 percent, led by higher prices for fresh fruit (+7.5 percent) and meat (+2.1 percent). In contrast, prices for dairy products, sugar and confectionery as well as fruit juices declined in February. Prices for food purchased from restaurants increased 1.1 percent.
 
Prices for transportation rose 0.4 percent in February compared with the same month a year earlier, following a 2.0 percent advance in January. In addition to gasoline, the index for the purchase of passenger vehicles decelerated, up 0.3 percent following a 0.9 percent gain in January.
 
In contrast, the clothing and footwear index declined 0.4 percent after rising 1.5 percent in January.
 
The Bank of Canada's core index rose 1.2 percent yoy in February, after increasing 1.4 percent in January. On a monthly basis, the seasonally adjusted core index rose 0.2 percent, matching the increase in January.
 
Month-over-month, prices accelerated to 0.8 percent from 0.3 percent in January. Gasoline prices rose 2.3 percent, a smaller increase than in the same month a year earlier (+8.4 percent).

Canada Inflation Rate Slows in February


Statistics Canada | Isabel Felino | isabel.felino@tradingeconomics.com
3/21/2014 1:21:30 PM