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

B.C. Centre for Disease Control maps showing new COVID-19 cases by local health area for the week of April 4-10. (BCCDC image)
Parksville-Qualicum passes Nanaimo in new COVID-19 cases

Greater Victoria had more new cases than any other Island area: B.C. Centre for Disease Control

‘For Sale’ signs quickly turned to ‘Sold’ signs as record-high demand for housing meets record-low inventory. (Cole Schisler photo)
Multiple offers and unconditional sales rampant in Ladysmith housing market

Vancouver Island Real Estate Board Zone 3 director Susan Perrey says the market is ‘crazy all around’

From left to right: Vicki Barta, Bruce Ormond, Greg Heide, Gord McInnis, and Charles Harman rehearse via zoom for the upcoming radio play, “Visitor from Planet Zoltan”. (Submitted photo)
Radio plays prove successful for Ladysmith Little Theatre, four more in production

Ladysmith Little Theatre pivoted to producing radio plays during the pandemic

Two men were seen removing red dresses alongside the Island Highway in Oyster Bay. (Submitted photo)
Two men filmed removing red dresses from trees in Oyster Bay

Activists hung the dresses to raise awareness for Vancouver Island Murdered/Missing Women & Girls

Ladysmith’s Taylor Walters received the Terry Fox Humanitarian Award and is hard at work pursuing her Bachelor’s Degree in Human-Computer Interaction at Quest University. (Submitted photo)
Ladysmith teen receives Terry Fox Humanitarian Award for advocating equal access to STEM opportunities

‘Different people think differently and that’s so important for innovation,’ Taylor Walters says

A woman wears a protective face covering to help prevent the spread of COVID-19 as she walks past the emergency entrance of Vancouver General Hospital in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
Top doctor warns B.C.’s daily cases could reach 3,000 as COVID hospitalizations surge

There are more than 400 people in hospital, with 125 of them in ICU

The father of Aaliyah Rosa planted a tree and laid a plaque in her memory in 2018. (Langley Advance Times files)
Final witness will extend Langley child murder trial into May or June

Lengthy trial began last autumn with COVID and other factors forcing it to take longer than expected

The corner of 96th Avenue and Glover Road in Fort Langley now has traffic signals, and new “touchless” signal activation buttons. (Matthew Claxton/Langley Advance Times)
Busy Fort Langley intersection gets ‘touchless’ crosswalk signals

The new traffic light started operation in April

A crossing guard stops traffic as students wearing face masks to curb the spread of COVID-19 arrive at Ecole Woodward Hill Elementary School, in Surrey, B.C., on Tuesday, February 23, 2021. A number of schools in the Fraser Health region, including Woodward Hill, have reported cases of the B.1.7.7 COVID-19 variant first detected in the U.K. THE CANADIAN PRESS/Darryl Dyck
COVID-infected students in Lower Mainland schools transmitting to 1 to 2 others: data

Eight to 13 per cent of COVID cases among students in the Lower Mainland were acquired in schools, B.C. says

An armed officer walks outside Cerwydden Care on Cowichan Lake Road near Skinner Road Wednesday, April 14 around 5:30 p.m. (Kevin Rothbauer/Citizen)
Police standoff at Duncan apartment ends peacefully

Officers surround building as homeowner held in apartment for nearly four hours by adult son

Norm Scott, president of Royal Canadian Legion Branch # 91, is disappointed the Legion does not qualify for COVID financial assistance from the provincial government. (Black Press Media file photo)
B.C.’s pandemic aid package passing Legion branches by

Federal non-profit status stymies provincial assistance eligibility

Latest modelling by public health shows cases generated by COVID-19 infections into places where it can spread quickly. (B.C. Centre for Disease Control)
Industrial sites, pubs, restaurants driving COVID-19 spread in B.C.

Infection risk higher in offices, retail, warehouses, farms

Hwy. 4 was shut down in both directions for 10 hours on March 23 as a rock bluff was blasted as part of Kennedy Hill’s ongoing construction. Commuters can expect five more 10 hour closures on five consecutive Wednesdays beginning April 28. (Photo courtesy of Ministry of Transportation and Infrastructure)
Five 10-hour Pacific Rim highway closures planned in the next 6 weeks

Closures needed for rock blasting as part of the Kennedy Hill Safety Improvement project.

Most Read