Annual rate of inflation accelerates sharply to 2.6% in February as tax break ends

The Canadian Press

· Posted: Mar 18, 2025 9:13 AM EDT | Last Updated: 2 minutes ago

The yearly complaint of ostentation accelerated sharply to 2.6 per cent successful February arsenic the national government's impermanent taxation interruption came to an extremity mid-month, Statistics Canada said Tuesday.

That marks a sizeable leap from the 1.9 per cent summation seen successful January, erstwhile Canadians saw GST and HST taken disconnected a assortment of household staples, communal gifts and edifice bills for the full month. February's figures are good up of the statement among economists polled by Reuters, which called for 2.2 per cent ostentation successful the month.

Statistics Canada's user terms scale is based connected last prices paid by Canadians, meaning income taxes are included successful the agency's calculations. Statistics Canada calculations amusement that, without the taxation interruption successful spot for fractional a month, ostentation would person travel successful astatine 3 per cent successful February.

With the taxation vacation inactive successful spot until Feb. 15, edifice nutrient prices were down 1.4 per cent year-over-year. But Statistics Canada noted the reintroduction of the income taxation mid-month meant eating retired was contributing the astir to the acceleration successful the wide terms scale successful February.

Alcoholic beverages, children's covering and toys were besides included successful the taxation vacation and saw their costs driblet likewise successful February, but not arsenic overmuch arsenic successful January.

The user terms scale roseate successful each state past month, with Ontario and New Brunswick facing the fastest accelerations.

While state prices were up 0.6 per cent from January to February, Statistics Canada said the yearly examination showed a deceleration past month, helping to rein successful the wide emergence successful inflation.

Elsewhere, Canadians were paying 18.8 per cent much connected question tours past month, with Statistics Canada pointing to accrued request successful question to the United States implicit the President's Day play to explicate the terms hikes.

The February ostentation figures bash not straight bespeak the imposition of tariffs oregon counter-tariffs betwixt Canada and the U.S., which went into effect aft a bid of deadlines and announcements successful March.

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