According to the report from Statistics Canada, the Consumer Price Index (CPI) rose at a faster pace year over year in February (+1.1%) than in January (+1.0%). Economists had expected a 1.3% increase.

The rise in gasoline prices (+5.0%) supported consumer price growth in February. Excluding gasoline, the CPI rose 1.0% in February—down from a 1.3% increase in January.

On a seasonally adjusted monthly basis, the CPI rose 0.1% in February.

Prices for consumer goods (+1.0%) rose at a faster year-over-year pace in February compared with January (+0.1%), mostly because of higher gasoline prices. The price increase for services slowed year over year in February (+1.2%) compared with January (+1.9%). Lower clothing prices (-7.1%) largely contributed to the year-over-year price decline for semi-durable goods (-3.5%) in February.

Gasoline prices rose for the third consecutive month, up 6.5% in February compared with January (+6.1%), and this supported growth in consumer prices in February. The price increase comes amid a gradual recovery in global demand for gasoline, crude oil supply cuts in major oil-producing countries and weather-related shutdowns in the southern United States.

On a year-over-year basis, gasoline prices were 5.0% higher, the first yearly price increase since February 2020.