Canada’s inflation rate rises

March 24th, 2012 - 2:29 pm ICT by IANS  

Ottawa, March 24 (IANS) Pushed by the increase of energy and food prices, Canada’s inflation rate rose to 2.6 percent in February from 2.5 percent in the previous month, Statistics Canada announced.

Led by increases in prices for gasoline and electricity, the cost of energy advanced 7.2 percent in the 12 months to February, up from a 6.5-percent gain in January, the agency said Friday.

Food prices rose 4.1 percent on a year-over-year basis in February, following a 4.2-percent increase in January, reported Xinhua.

Excluding food and energy, the Consumer Price Index (CPI) increased 1.7 percent last month.

Overall, prices increased in seven of the eight major components tracked by Statistics Canada, with only recreation, education and reading bucking the trend.

Apart from food, transportation costs rose 4.2 percent in the 12 months to February, while shelter costs increased 1.9 percent.

The Bank of Canada’s core index, which excludes volatile items such as energy and fresh foods, rose by 0.2 percentage points to 2. 3 percent in February from 2.1 percent in January, with notable price increases for electricity.

The core index, which is monitored closely by the central bank to determine the benchmark interest rate, is now well above the Bank’s target of 2 percent.

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