Canada inflation slows to 1.8 per cent in February, Statistics Canada says

Canada’s annual inflation rate slowed to 1.8 per cent in February, down from 2.3 per cent in January, according to new data released Monday by Statistics Canada.

The federal statistics agency reported the 0.5 percentage point drop in the consumer price index on a year-over-year basis. The figures suggest price pressures eased compared with the previous month.

Economists, however, say the latest data may not fully reflect the impact of rising global tensions in the Middle East, which have pushed oil prices higher in recent weeks. The full effect of those increases may appear in future inflation reports.

The data also reflects base effects from last year. In February 2025, prices rose after a temporary GST break ended, making this year’s annual comparison appear softer.

Attention now turns to the next interest-rate decision from the Bank of Canada, expected Wednesday. Financial analysts widely anticipate the central bank will hold its policy rate steady for a third consecutive meeting, though rising global oil prices could complicate the inflation outlook.