Canada’s inflation slows to 1.4% in February on lower gas prices

OTTAWA – Canada’s annual inflation rate cooled off to 1.4 per cent in February, down from 2.0 percent in January, mostly because of a decline in gasoline prices.

Inflation by province and territories

Canada’s national inflation rate was 1.4 percent in February, Statistics Canada says. Here’s what happened within the provinces and territories. (Previous month in brackets):

– Newfoundland and Labrador, 1.6 percent (2.4)

– Prince Edward Island, 1.1 (1.9)

– Quebec, 1.3 (2.0)

– New Brunswick, 1.8 (2.4)

– Quebec, 1.0 (1.6)

– Ontario, 1.6 (2.0)

– Manitoba, 1.1 (2.1)

– Saskatchewan, 1.4 (2.2)

– Alberta, 1.4 (2.1)

– Bc, 1.6 (2.3)

– Whitehorse, Yukon, 1.3 (1.9)

– Yellowknife, N.W.T., 2.0 (2.0)

– Iqaluit, Nunavut, 2.4 (2.4)

Excluding gasoline, Statistic Canada’s consumer price index would have been 1.9 percent recently.

Statistics Canada says food would be a major inflationary factor in February, because it continues to be for many months. Consumers paid 3.9 per cent more for food last month compared with February 2015.

In total, six from the eight major components of the consumer price index were up.

Apart from the transportation index that includes gasoline, the only real other aspect of decline was clothing and footwear – down 1.3 per cent.

The core inflation rate, which excludes some volatile items such as gasoline, was 1.9 percent, down from 2.0 percent in January.

Economists had expected Canada’s overall inflation rate to become 1.5 percent and core inflation to be 2.0 percent.

In another report, Statistics Canada reported unexpectedly strong retail sales for January, led by motor vehicle and parts dealers.

Overall, retail sales rose 2.1 per cent to $44.2 billion in January, compared with $43.2 billion in December.

The automobile and parts dealers accounted for about one-quarter of January’s retail sales, rising 4.8 per cent from December to $11.6 billion the following month.

Retail sales were up in eight provinces in January, with Alberta showing a decline of 0.2 percent and Prince Edward Island edging down 0.1 per cent from December.

The Canadian Press

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