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

Dr. Christine Perkins is the new superintendent of schools for the Vernon School District, effective Aug. 1. Perkins moves to the North Okanagan from the Kootenay Lake School District in Nelson. (Vernon School District photo)
Vernon School District names new superintendent

Dr. Christine Perkins moves from Kootenay Lake district to take over from the retiring Joe Rogers

Vernon Public Art Gallery executive director Dauna Kennedy and board member Kyle Britton accept a $43,400 grant from the BC Arts Council one-time StrongerBC fund amid the COVID-19 pandemic April 9, 2021. (VPAG)
$43K boost for Vernon gallery

Province backs local art gallery with one-time pandemic grant

A 46-year-old man from Armstrong died in Revelstoke hospital after being injured in the Lumby area. (File photo)
Armstrong snowmobiler dies in Revelstoke hospital

46-year-old man injured in Tsuius Mountain area of Monashees around Lumby area

Part of the massive mess left behind in a Spallumcheen rental home owned by Wes Burden, whose tenants bolted from the property in the middle of the night. Burden is now facing a hefty cleaning and repair bill as a result. (Photo submitted)
Spallumcheen landlord’s home trashed by tenants

Rooms filled with junk, garbage, human and animal feces; landlord scared to rent again

B.C. wineries are open for indoor tasting despite new provincial health regulations. Photo- 
50th Parallel Winery, Instagram.
Indoor wine tastings still allowed in B.C., not considered a ‘social gathering’

“Tasting is really just part of the retail experience. The analogy I use is you wouldn’t buy a pair of pants without trying them on.”

Burnaby MLA Raj Chouhan presides as Speaker of the B.C. legislature, which opened it spring session April 12 with a speech from the throne. THE CANADIAN PRESS
B.C. NDP promises more health care spending, business support in 2021 budget

John Horgan government to ‘carefully return to balanced budgets’

The Red Pill Rapper performs to the crowd gathered for the Rally For Food Security at Blackburn Park on Saturday, April 10, 2021. (Kristal Burgess Photography)
The Red Pill Rapper performs to the crowd gathered for the Rally For Food Security at Blackburn Park on Saturday, April 10, 2021. (Kristal Burgess Photography)
Suspicion of ‘fake news media’ makes rally uncomfortable for Salmon Arm event photographer

More than 300 people counted at city park for ‘Rally For Food Security’

A lady wears a sticker given out after receiving a COVID-19 vaccine at a clinic in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS
B.C.’s COVID-19 case count slows after last week’s peak

3,219 new cases since Friday, 18 additional deaths

North Cowichan councillor Tek Manhas did not violate the municipality’s code of conduct by posting a sexist meme on Facebook, council concludes. (File photo)
B.C. municipality to take no action against councillor who posted sexist meme

Tek Manhas’s meme doesn’t violate North Cowichan council’s code of conduct, municipality concludes

The former Summerland Asset Development Initiative building on Prairie Valley Road in Summerland was suggested as the site for a temporary transitional housing facility for the community. However, Summerland council has rejected this proposal. (John Arendt - Summerland Review)
Summerland council rejects transitional housing facility

Concerns raised about short timeline and condition of municipally-owned building

Shayla, an 8-pound black and grey Havanese, was stolen from outside a store on Banks Road on Saturday. (Contributed)
Stolen pup located, Kelowna RCMP confirms

Mounties said on April 12 that Shayla, the 8-pound, black and grey Havanese dog, has been located safe and sound

Penticton Vees continue their winning streak carrying a 5-0 win title as of Sunday night's hockey action. (Cherie Morgan/Cherie Morgan Photography)
Penticton Vees continue winning streak

Sunday night’s 6-1 win has them with five in a row since the start of the season

A sign on a shop window indicates the store is closed in Ottawa, Monday March 23, 2020. The Canadian Federation of Independent Business is raising its estimate for the number of businesses that are considering the possibility of closing permanently. THE CANADIAN PRESS/Adrian Wyld
Small business struggling amid COVID-19 pandemic looks for aid in Liberals’ budget

President Dan Kelly said it is crucial to maintain programs to help businesses to the other side of the pandemic

The National Security and Intelligence Committee of Parliamentarians says that includes attempts to steal Canadian research on COVID-19 and vaccines, and sow misinformation. (AP Photo/Esteban Felix)
Intelligence committee warns China, Russia targeting Canadian COVID-19 research

Committee also found that the terrorist threat to Canada has shifted since its last such assessment

Most Read