Canada: Inflation eases in February from January
Latest reading: Consumer prices were up 1.8% on a year-on-year basis in February, following a 2.3% rise in the prior month. February’s reading was the weakest since July 2025, below market expectations and within the Central Bank’s 1.0–3.0% inflation target range.
Relative to the previous month’s data, there were milder price pressures for housing (+1.5% in annual terms vs +1.7% in January), food (+5.4% vs +7.3% in January), recreation and culture (+0.5% vs +1.0% in January) and clothing and footwear (+0.6% vs +0.7% in January). In contrast, price pressures were higher for transportation in February (-1.1% vs -1.6% in January).
Meanwhile, core consumer prices rose 2.3% in annual terms in February, following a 2.6% increase in the prior month.
Lastly, consumer prices were up 0.55% in February in month-on-month terms, following a flat reading in the prior month.