February Inflation

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By Elli Davis, March 21, 2010

Surprising news!! Canada's core inflation rate has increased noticeably in February, according to Statistics Canada! It rose by 2.1 percent. In January, the increase was slightly lower: 2 percent exactly. The pace of the increase this past month was actually the fastest since December 2008. The Vancouver Winter Olympics very likely influenced this fact too – the prices for accommodation or some services, for example, were certainly higher.

There was a fast increase in consumer price inflation in February too – it grew by 1.6 percent from a year earlier. If compared to January, though, there was only a 0.7 percent rise. Quite significant, 16 percent, rise was in traveler accommodation and automobile insurance was 7.9 percent up last month. Gasoline prices rose by 15 percent from February 2009. Well, this is actually quite surprising for me too, I'm not going to lie. However, who knows what the inflation rate would look like if there were no Olympics last month.