Inflation in Canada: February saw largest deceleration since April 2020

The annual pace of inflation cooled in February as it posted its largest deceleration since April 2020.

The annual pace of inflation cooled in February as it posted its largest deceleration since April 2020.

Statistics Canada said Tuesday its consumer price index in February was up 5.2 per cent compared with a year earlier.

The reading compared with an annual inflation rate of 5.9 per cent in January and was the lowest annual inflation rate since January 2022 when it was 5.1 per cent.

Statistics Canada noted that the decline was due to a steep monthly increase in prices in February 2022 when the global economy was significantly affected by the Russian invasion of Ukraine.

Despite the overall cooling, grocery prices remained elevated and outpaced overall inflation.

Prices for food purchased from stores in February were up 10.6 per cent compared with a year ago, the seventh consecutive month of double-digit increases.

Meanwhile, energy prices were down 0.6 per cent year over year as gasoline prices fell 4.7 per cent compared with a year ago when prices began to rise due to the Russian invasion of Ukraine. It was the first yearly decline for gasoline prices since January 2021.