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

A second-floor balcony continues to smoulder after a fire extinguisher was used to get a small balcony fire under control at the Washington Inn Apartments. Brian Hayward, who lives on the third floor, was alerted to the fire by the smell of smoke wafting into his apartment. Photo by Brian Hayward.
Courtenay firefighters respond to balcony fire at Washington Inn Apartments

Firefighters were called out to the Washington Inn Apartments Sunday, April 17,… Continue reading

RCMP forensics investigators scour the site north of Highland School in Comox, where multiple people were stabbed during a party Saturday night, April 16. Photo by Terry Farrell
UPDATED: Multiple stabbings at Comox bush party

Three youths hospitalized after an assault near Highland Secondary

Cumberland is surrounded by trees — and logging. Its council is supporting a call to stop old-growth logging in vulnerable areas of the province such as Fairy Creek. Photo by Mike Chouinard
Cumberland backs request to save B.C.’s old-growth forests

The Comox Youth Climate Council is asking local governments to take stand

Danita Bilozaze and her daughter Dani in Comox. Photo by Karen McKinnon
Valley woman makes historic name change for truth and reconciliation

First in Canada to be issued new passport under the TRC Calls to Action

For Leela Harrop, the recent death of her brother Raju Tiwari pushed her to sign up for the vaccine. Photo supplied
Comox woman on fence books vaccine due to brother’s death

Leela Harrop says she did have issues with signing up online this past week

Vancouver resident Beryl Pye was witness to a “concerning,” spontaneous dance party that spread throughout social groups at Kitsilano Beach on April 16. (Screen grab/Beryl Pye)
VIDEO: Dance party erupts at Vancouver’s Kitsilano Beach to the dismay of onlookers

‘It was a complete disregard for current COVID-19 public health orders,’ says Vancouver resident Beryl Pye

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

The following is a list of restaurants offering take-out and patio dining. ADOBE STOCK IMAGE
List of Comox Valley restaurants offering take-out, patio dining options

Restaurants in the Comox Valley continue to adapt to government-imposed restrictions in… Continue reading

Deputy Prime Minister and Minister of Finance Chrystia Freeland responds to a question during Question Period in the House of Commons Tuesday December 8, 2020 in Ottawa. The stage is set for arguably the most important federal budget in recent memory, as the Liberal government prepares to unveil its plan for Canada’s post-pandemic recovery even as a third wave of COVID-19 rages across the country. THE CANADIAN PRESS/Adrian Wyld
Election reticence expected to temper political battle over federal budget

Opposition parties have laid out their own demands in the weeks leading up to the budget

A syringe is loaded with COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. to open up COVID vaccine registration to all B.C. residents 18+ in April

Registration does not equate to being able to book an appointment

Pat Kauwell, a semi-retired construction manager, lives in his fifth-wheel trailer on Maxey Road because that’s what he can afford on his pension, but a Regional District of Nanaimo bylaw prohibits using RVs as permanent dwellings, leaving Kauwell and others like him with few affordable housing options. (Chris Bush/News Bulletin)
Rules against RV living hard on Island residents caught in housing crunch

Regional District of Nanaimo bylaw forcing pensioner to move RV he calls home off private farm land

Selina Robinson is shown in Coquitlam, B.C., on Friday November 17, 2017. British Columbia’s finance minister says her professional training as a family therapist helped her develop the New Democrat government’s first budget during the COVID-19 pandemic, which she will table Tuesday. THE CANADIAN PRESS/Darryl Dyck
B.C. finance minister to table historic pandemic-challenged deficit budget

Budget aims to take care of people during pandemic while preparing for post-COVID-19 recovery, Robinson said

Each spring, the Okanagan Fest-of-Ale is held in Penticton. This year, as a result of the COVID-19 pandemic, the festival will not be held. However, beer is still available. How much do you know about this beverage? (pxfuel.com)
QUIZ: How much do you really know about beer?

Put your knowledge to the test with this short quiz

Most Read