Canada Annual Inflation Rate Rises to 1.5% in February

The annual inflation rate in Canada rose to 1.5 percent in February 2019 from 1.4 percent in the previous month and above market expectations of 1.4 percent. Prices increased further mainly driven by food and shelter.

Year-on-year, prices advanced further for food (3.2 percent from 2.8 percent in January), namely fresh vegetables (14.3 percent) and fruit (3.8 percent); and clothing and footwear (1.6 percent from 0.5 percent). Also, cost of transportation rebounded (0.1 percent from -0.4 percent) and inflation was steady for shelter (2.4 percent, the same as in January) and health and personal care (0.6 percent). On the other hand, prices eased for household operations, furnishings and equipment (0.2 percent from 0.7 percent); recreation, education and reading (1.0 percent from 1.3 percent); and alcoholic beverages and tobacco products (4.1 percent from 4.5 percent). 

Regarding special aggregates of the CPI, prices for durable goods increased 0.3 percent, rebounding from a 0.1 percent decline in the prior month. In addition, the price of energy products went down 5.7 percent, less than a 6.9 percent fall in January, of which gasoline (-11.9 percent). Meanwhile, cost of services slowed to 2.3 percent from 2.7 percent in the previous month.

On a monthly basis, consumer prices went up 0.7 percent, after a 0.1 percent in January and higher than market consensus of 0.6 percent.

The BoC's annual core inflation, which excludes volatile items, was at 1.5 percent, unchanged from the prior month.

Canada Annual Inflation Rate Rises to 1.5% in February

Statistics Canada | Stefanie Moya |
3/22/2019 12:57:47 PM