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Canadian inflation picks up as prices jump 1.2% in February

Annual inflation rate jumps 0.7 percentage points, a bigger increase than economists had expected.


March 27, 2013
by The Canadian Press

OTTAWA – Statistics Canada (StatsCan) says February had the biggest monthly increase in consumer prices in more than over 20 years, as the cost of consumer goods jumped from January.

The annual inflation rate jumped 0.7 percentage points to 1.2% in February, a bigger increase than economists had expected.

February’s price increases reversed a recent trend that had taken the consumer price index to the lowest level in three years in January.

Gasoline was the biggest inflation driver, with a month-over-month increase of 8.4%.

But most items saw increases, helping lift the Bank of Canada core inflation index to 1.4%, closer to the central bank’s desired setting of 2%.

Regionally, Statistics Canada says inflation rose at a faster pace in February in all provinces, with Newfoundland and Labrador topping the list at 2.3%.

©The Canadian Press