Canada’s inflation rate drops to 5.2%

By: Thomas I. Likness
Eagle News Service

(Eagle News) — Canada’s inflation rate has dropped to 5.2%, the biggest drop since April, 2020, Statistics Canada reported Tuesday.

But there is little relief for shoppers at grocery stores.

“Food purchased from stores rose 10.6% year over year in February, marking the seventh consecutive month of double-digit increases,” Statistics Canada said in a release.

The agency says several factors are to blame.

“Continuing to put upward pressure on grocery prices are supply constraints amid unfavorable weather in growing regions, as well as higher input costs such as animal feed, energy and packaging materials,” it said.

There was good news for motorists.

Gasoline prices fell 4.7%, the first yearly decline since January 2021.

“On a monthly basis, Canadian drivers paid 1.0% less for gasoline in February amid higher crude oil inventory levels within the United States,” said Statistics Canada.

Prices for fuel oil and other fuels rose at a slower pace.

Year over year, in February they went up 24.3% compared to 36.5% a month earlier.

Shelter costs also rose at a lower rate for the third consecutive month — 6.11% in February.

Mortgage interest costs are much higher. They are up 23.9% because of higher interest rates.
(Eagle News Service)