Canadian Consumer Price Index Up 5.2% Year-Over-Year in February

Statistics Canada (StatCan) reported Tuesday (3-21-23) that the Canadian Consumer Price Index (CPI) rose 5.2% year-over-year in February, following a 5.9% increase in January. This marks the largest deceleration in the headline CPI since April 2020. StatCan explains that the year-over-year deceleration in February was due to a base-year effect (for the second consecutive month), which is attributable to a steep monthly increase in prices in February 2022 (1.0%).

Excluding food and energy, prices were up 4.8% year-over-year in February, following a 4.9% increase in January. The all-items excluding mortgage interest costs rose 4.7%, after climbing 5.4% higher in January.

On a monthly basis, the CPI increased 0.4% in February, following a 0.5% gain in January. Compared with January, StatCan reports Canadians paid more for mortgage interest costs in February, which was partially offset by a decline in energy prices. On a seasonally adjusted monthly basis, the CPI rose 0.1%.

StatCan notes that while inflation has slowed in recent months—having increased 1.2% compared 6 months ago—prices remain elevated. Compared with 18 months ago, for example, inflation has increased 8.3%.