Annual inflation cools to 1.8% in February, StatCan says
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Statistics Canada says the annual rate of inflation dipped below two per cent in February as the end of last year’s federal “tax holiday” helped take some steam out of the yearly price comparisons.
The agency said Monday that February’s inflation reading came in at 1.8 per cent year-over-year, half a percentage point lower than January’s figures and just under economists’ expectations for the month.
The main factor driving the headline number lower was the end of last year’s tax holiday, which saw the federal sales tax taken off a variety of household staples, gifts and dining out for a two-month period ending mid-February 2025.
Lower prices from the tax break were only in effect for half of February last year compared with all of January, making the annual inflation calculations somewhat better last month.
Restaurant meals benefited most as the tax relief started to fall out of the inflation calculations. Annual inflation in the category cooled to 7.8 per cent in February from 12.3 per cent in January.
Toys, games and hobby supplies also saw some inflation relief in the waning days of the tax holiday, StatCan said.
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