A sign outside a building at Statistics Canada in seen in Ottawa on Friday, March 12, 2021. THE CANADIAN PRESS/Justin Tang

A sign outside a building at Statistics Canada in seen in Ottawa on Friday, March 12, 2021. THE CANADIAN PRESS/Justin Tang

Statistics Canada says annual pace of inflation edges up in February to 1.1%

Statistics Canada says driving much of the growth was a 5% year-over-year increase in gasoline prices

Statistics Canada says the annual pace of inflation ticked slightly higher in February, largely driven by higher gasoline prices.

The consumer price index in February was up 1.1 per cent compared with a year earlier, and up from the year-over-year increase of 1.0 per cent recorded in January.

Financial data firm Refinitiv had said the average economist estimate is for a year-over-year increase of 1.3 per cent.

Statistics Canada says driving much of the growth was a five per cent year-over-year increase in gasoline prices, marking the third-straight month of gains.

Excluding gasoline prices, the agency’s consumer price index would have risen by one per cent in February.

The agency also says that homeowner replacement costs, which are linked to the price of new homes, rose seven per cent between February 2020 and last month, marking the largest yearly increase since February 2007.

February’s reading marked only the third month that the headline inflation reading was at or above one per cent during the pandemic.

The reading for last month also marked the highest the consumer price index has been since February 2020, when annual inflation clocked in at 2.2 per cent, just before the spread of COVID-19 began to affect the economy.

The longer price weaknesses prevail, the longer Canada’s central bank plans to keep its key interest rate at 0.25 per cent to help the economy get back on its feet.

Statistics Canada says the average of Canada’s three measures for core inflation, which are considered better gauges of underlying price pressures and closely tracked by the Bank of Canada, was 1.73 per cent for February.

The Bank of Canada has warned that annual inflation readings in March and beyond may spike above its two-per-cent comfort zone, but only because the 12-month comparison will be with the worst of the pandemic-induced downturn.

The trend in higher prices at the pumps should push total annual inflation above two per cent this month, possibly hitting three per cent in April, says CIBC senior economist Royce Mendes.

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

economyinflation

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Bella Coola Valley Arts Council’s (BCVAC) Ida Eriksen enjoys a full life since retiring to the Bella Coola Valley Coola in 2013. She volunteers for BCVAC and likes to carve out time for art, gardening and hiking. (Photo submitted)
Art House Gallery keeps community connections close during COVID times

An art sale of the artwork of Ernest and Jill Hall will take place this weekend

A grass fire west of Williams Lake, seen here Tuesday, is considered to be being held by members of the BC Wildfire Service. (Photo submitted)
Photo collage of loved ones lost to substance use and overdose. (Photo courtesy Moms Stop The Harm)
B.C. overdose deaths still rising 5 years after public health emergency declared

Moms Stop the Harm calls on B.C. to provide safe supply in response to deadly illicit drug use

A black bear tries to get at a bird feeder at a home near Williams Lake. (Laura Ulrich photo)
Managing bear attractants a top priority in B.C. for 2021: Conservation Officer Service

Garbage, fruit trees, bird feeders, compost and livestock are common attractants for bears

B.C. Cattlemen’s Association general manager Kevin Boon. (B.C. Cattlemen’s Association photo)
COVID, BSE, water access and private land rights: B.C. Cattlemen’s general manager weighs in

Kevin Boon said positive aspect of pandemic is more people interested in where their food comes from

Rainbow trouts thrashing with life as they’re about to be transferred to the largest lake of their lives, even though it’s pretty small. These rainbows have a blue tinge because they matched the blue of their hatchery pen, but soon they’ll take on the green-browns of their new home at Lookout Lake. (Zoe Ducklow/News Staff)
VIDEO: B.C. lake stocked with hatchery trout to delight of a seniors fishing club

The Cherish Trout Scouts made plans to come back fishing soon

Vancouver Police Const. Deepak Sood is under review by the Independent Investigations Office of B.C. after being recorded making comments to a DTES harm reduction advocate Sunday, April 11. (Sarah Blyth/Screen grab)
VIDEO: Police officer convicted of uttering threats under B.C. watchdog review again

Const. Deepak Sood was recorded Sunday saying ‘I’ll smack you’ and ‘go back to selling drugs’ to civilian Sarah Blyth

Provincial health officer Dr. Bonnie Henry prepares a daily update on the coronavirus pandemic, April 21, 2020. (B.C. Government)
B.C.’s COVID-19 infection rate persists, 1,005 new cases Friday

Hospitalization up to 425, six more virus-related deaths

B.C. Premier John Horgan greets Lt. Governor Janet Austin's dog Macduff as she arrives to present the throne speech at the B.C. legislature, April 12, 2021. (B.C. government)
B.C. Premier John Horgan gets AstraZeneca shot, encourages others

27% of B.C. residents have now been vaccinated against COVID-19

The Nautical Dog Cafe at Skaha marina is getting its patio ready in hopes Mother Nature will provide where provincial restrictions have taken away indoor dining. (Facebook)
‘A lot of instability’: B.C. restaurants in layoff limbo

As COVID-19 cases stay high, restaurants in British Columbia are closed to indoor dining

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Prime Minister Justin Trudeau looks on as Deputy Prime Minister and Finance Minister Chrystia Freeland responds to a question during a news conference on Parliament Hill in Ottawa, Tuesday, Aug. 18, 2020. THE CANADIAN PRESS/Adrian Wyld
Expectations high as Trudeau Liberals get ready to unveil first pandemic budget

The Liberals will look to thread an economic needle with Monday’s budget

Since April 4, 38 flights with COVID-19 cases have departed from Vancouver International Airport, while 23 arrived. (Phil McLachlan/Capital News)
Vancouver the largest source of domestic flights with COVID-19 cases: data

This month alone, 38 flights with COVID-19 cases have departed from Vancouver International Airport, while 23 arrived

John Furlong, Own The Podium board chairman and former CEO of the Vancouver Olympics, addresses a Vancouver Board of Trade luncheon in Vancouver, B.C., on Wednesday November 25, 2015.THE CANADIAN PRESS/Darryl Dyck
John Furlong presents 2030 Winter Games vision to Vancouver Board of Trade

Vancouver and Whistler would remain among host sites because of 2010 sport venues still operational

Most Read