The annual inflation rate in Canada rose to 1.1% in February of 2021 from 1% in January and below market expectations of 1.3%. Still, it is the steepest inflation rate in a year mainly due to higher gasoline prices (5%), which posted the first increase since February of 2020. Additional upward pressure came from costs of food (1.8%), of which food purchased from restaurants (2.9%) and food purchased from stores (1.3%); shelter (1.4%) and health and personal care (1.3%). Excluding gasoline, inflation was 1.0%, down from 1.3% in January. On a monthly basis, consumer prices were up 0.5%, following a 0.6% increase in the prior month and missing market expectations of 0.7%. source: Statistics Canad |