According to Statistics Canada, Canada’s annual inflation rate unexpectedly cooled to 2.8% in February. This is the slowest pace since June. The deceleration was influenced by several factors, including lower costs for cellular services, groceries, and internet access services. Economists had initially anticipated a rise to 3.1%, but the actual rate surprised by remaining lower.
Key points from the report:
Cellular Services: Canadians who signed up for new cell phone plans in February paid 26.5% less than they would have at the same time last year. This reduction was due to lower prices for new plans and increased data allowances.
Rent and Mortgage Interest: These costs continued to be primary drivers of the inflation rate.
Gas Prices: After a four per cent decline in January, gas prices ticked up 0.8% in February year-over-year.
Overall, the unexpected slowdown in inflation may impact expectations of a mid-year rate cut12. 🇨🇦