Falling gasoline prices reduced the inflation rate to 2.2% in February, Statistics Canada said today.

Pump prices followed crude oil down, leading to an average drop of 6.8% across the country.

Lower gas prices meant the average cost of a basket of goods and services was 2.2% higher in February than it was in February 2005. That was down from a 2.8% year-over-year increase in January.

Six of the eight major components of the consumer price index rose, led by shelter, transportation and food, while clothing and footwear and recreation, education and reading fell.

The main factors behind the 2.2% year-over-year rise in February were prices for gas, up 7.4% on the year, automobiles, up 3.2%, and homes.

New house prices rose an average of 5.8% nationally. In Alberta, they surged by 18.5%.

Home heating costs rose sharply as well, with natural gas jumping 17.1% year-over-year.

Compared with January, prices in February were down 0.2%, again because of cheaper gas, Statistics Canada said.

The consumer price index was at 128.6 in February, compared with 125.8 in February 2005 and 128.8 in January.