Inflation in Canada continues to slow, reaffirming BOC's rate pause
CTV
The annual pace of inflation cooled in February as it posted its largest deceleration since April 2020.
Canada's annual inflation rate continued to slow last month, reaffirming the central bank's decision to hold its key interest rate steady.
In its latest consumer price index report released Tuesday, Statistics Canada said the country's inflation rate rose 5.2 per cent year over year in February, marking the largest deceleration since April 2020.
The reading compared with an annual inflation rate of 5.9 per cent in January and was the lowest rate since January 2022 when it was 5.1 per cent.
BMO's chief economist Douglas Porter called the report "mildly encouraging."
"That's actually a couple months in a row now where we've had slightly better-than-expected inflation readings," he said.
Since peaking at 8.1 per cent in the summer, Canada's annual inflation rate has been tumbling amid easing global pressures and high interest rates.
The Bank of Canada is hoping inflation will continue to slow without the need for further interest rate hikes.
