Statistics Canada is set to release the inflation data for February today, with most economists anticipating a rise due to the conclusion of the federal government’s temporary sales tax relief.
The two-month GST holiday, which had a cooling effect on prices in December and January, came to an end in February, leading to expectations that inflation will pick up again as the sales tax resumed in mid-month.
Economists surveyed by Reuters predict that the annual inflation rate for February will climb to 2.2%, up from 1.9% in January.
This data release follows the Bank of Canada’s recent decision to lower its policy rate in an attempt to mitigate the economic impact of ongoing trade tensions with the United States. The central bank will closely monitor inflation trends in the coming months, particularly as the tariff conflict continues to unfold.
This report by The Canadian Press was first published on March 18, 2025.
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