Annual inflation cools to 1.8% in February

Annual inflation cooled to 1.8% in February, dipping below 2% according to Statistics Canada. The slowdown largely reflects the end of last year’s federal 'tax holiday', which softened year-over-year comparisons and could modestly ease pressure on monetary policy and short-term rate expectations.

Analysis

Annual inflation cooled to 1.8% in February, dipping below 2% according to Statistics Canada. The slowdown largely reflects the end of last year’s federal 'tax holiday', which softened year-over-year comparisons and could modestly ease pressure on monetary policy and short-term rate expectations.