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Canada joy as inflation ‘deflates'
Canada Inflation has slowed to its lowest level in six months as a result of slower growth in gasoline prices and car prices that fell at their fastest pace in over 50 years...
Consumer prices rose at a yearly pace of 1.8% in February, compared with a rise of 2.2% in January, according to Statistics Canada. The core price index (which excludes volatile items like gasoline prices and is used by the Bank of Canada to monitor its inflation target) rose 1.5% in February. This was a slight acceleration from the growth rate of 1.4% in January.
The strong Canadian dollar helped pull down the cost of fresh fruit and vegetables, which fell about 15% and 17%, respectively. On a monthly basis, inflation rose slightly more than economists had been expecting, although much of the gains were driven by normal seasonal pressures. Consumer prices rose 0.4% in February, compared with a 0.2% decline in January, while the core index jumped 0.5%.
"While a bit higher than expected in February, the big picture is that Canadian inflation trends remain comfortably below 2% and comfortably within the Bank of Canada's target range," wrote BMO Capital Markets economist Douglas Porter in a morning commentary.
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