Categories: BusinessCanadian NewsCanadian PressPolitics

Annual inflation rate accelerates to 2.2%, beyond Bank of Canada’s target

OTTAWA — The country’s annual pace of inflation sped up to 2.2 per cent last month to rise above the Bank of Canada’s ideal target of two per cent.

The February data from Statistics Canada represented a significant boost to the inflation rate compared with the month before when it was just 1.7 per cent.

The report also says the average of the agency’s three measures of core inflation, designed to omit the noise of more-volatile items like gasoline, also continued its upward momentum last month and has now climbed slightly above two per cent.

Inflation is a central piece of the information for the Bank of Canada’s interest-rate decisions and, with both readings above target, another hike could come even sooner than experts have anticipated.

The inflation report says the main driver that pushed up consumer prices last month was the higher cost of gasoline, while pricier items like restaurant meals and passenger vehicle also had impacts.

The primary downward forces on prices came from cheaper video equipment, digital devices, hotels and electricity.

The last time the overall inflation reading reached 2.2 per cent was October 2014, just as the oil-price crash was getting underway, while the average of the core measures hasn’t been above two per cent since February 2012.

Bank of Canada governor Stephen Poloz has hiked the benchmark interest rate three times since last summer, but he maintained the rate following a policy meeting earlier this month.

The Canadian Press


Share
Published by
The Canadian Press

Recent Posts

  • Opinion
  • Politics

Is anyone as stupid as the Liberals think we are?

In the wake of the massive SNC-Lavalin scandal and the subsequent ultra-transparent cover up, one question is still left on…

12 hours ago
  • Canadian News
  • Politics

PM Trudeau admits Jody Wilson-Raybould asked if he was directing her in SNC-Lavalin scandal

“There were many discussions going on, which is why Jody Wilson-Raybould asked me if I was directing her or going…

12 hours ago
  • Breaking News
  • Canadian News
  • Politics

Doug Ford posts video supporting #UnitedWeRoll, pro-pipeline protests

Doug Ford the Premier of Ontario has posted on Twitter a video highlighting his support for the United We Roll…

13 hours ago
  • 2019 Election
  • Politics

POLL: Conservatives would form government if elections were held today

According to a new poll by Campaign Research, the Trudeau government has been seriously impacted by the SNC-Lavalin scandal.

14 hours ago
  • Alberta News
  • Canadian News
  • Indigenous
  • Opinion

Junior hockey team forfeits season after team with Indigenous players “offensively” dance to Indigenous music

A Fort McMurray hockey team has forfeited their season after a locker room video sparked online outrage and claims of…

15 hours ago
  • B.C. News
  • Canadian News
  • Politics

Three times when dirty politics entered the Burnaby South byelection

If the Burnaby South byelection is an indicator of how October's federal election will play out, then we might be…

17 hours ago