Overview
- Consumer prices rose 0.5% month over month in February, below the 0.7% increase economists expected.
- Statistics Canada said March will be the final CPI reading influenced by the sales-tax holiday base effect.
- Bank of Canada core gauges CPI-trim and CPI-median were both 2.3%, indicating underlying pressures near the 2% target.
- Gasoline prices were down 14.2% year over year due to last April’s carbon-tax removal, though pump prices have climbed in recent weeks with the Middle East war.
- The Bank of Canada has kept its policy rate at 2.25% and will offer fresh guidance on inflation pressures at this week’s decision.