Higher gasoline prices bumped Canada’s annual inflation rate up to 2.1% in February, Statistics Canada reported Monday.
That was a slight gain from January’s 2% rate and was in line with economists’ forecasts.
The core rate of inflation, which excludes volatile items like gasoline and fresh fruit and vegetables, rose by 1.8% year-over-year. The core rate had been 1.6% in January.
That’s still below the Bank of Canada’s 2% target rate.
Gasoline prices in February were 8.5% higher than they were a year earlier, making it the 10th month in a row that gas prices have been the biggest factor driving the cost of living higher.
Upward pressure also came from higher homeowners’ replacement costs and higher prices for cars.
“North American automotive vehicle manufacturers significantly reduced their financial incentives when their 2005 models were introduced,” Statistics Canada said.
Moderating influences came from lower prices for fresh vegetables, children’s clothing, and especially computer equipment and supplies, which have dropped more than 22% in the past year.
On a month-over-month basis, gasoline prices increased by 3.4%. Higher men’s and women’s clothing prices also got some of the blame, while travel tour costs rose 8.1% from January.
Inflation edges up to 2.1%
Core inflation remains below Bank of Canada target rate
- By: IE Staff
- March 23, 2005 March 23, 2005
- 09:30