Consumer price inflation in Canada in February climbed 5.7% per year – its biggest increase since August 1991, Statistics Canada announced on Wednesday.
While the annual increase was to come in at 5.5%, according to market consensus, annual consumer inflation in January stands at 5.1%.
It’s the second consecutive month than the annual consumption price index (CPI) in the country exceeded 5%.
“Consumers have paid higher prices for gas and groceries in February 2022 compared with the same month a year earlier. Housing costs continued their trend higher, rising as quickly as possible year-over-year pace since August 1983,” the agency said. in A declaration.
On a monthly basis, the CPI increased by 1% in February, the largest increase since February 2013.
Market expectation for the monthly CPI was expected to rise by 0.9% in February after rising 0.9% in January of the previous month.
Excluding gasoline prices, CPI in February increased by 4.7% year-on-year outpacing the 4.3% gain in January when it increased fastest pace since 1999.
“Canadian motorists paid 32.3% more at the pump compared to with February 2021,” Statistics Canada said.
“Monthly gasoline prices rose 6.9% amid geopolitical conflict in Eastern Europe and the Middle East, as the uncertainty surrounding global oil supply is putting upward pressure on price”, he added.
The bank of Canada on March 2 increased son interest rate per 25 base points at 0.5% to tame record- high inflation. It was the first rate hike through the center bank since October 2018.
