Canada Inflation Rises for First Time in Five Months

Canada's annual inflation rate rose to 1.4 percent in February from 1.1 percent in January, government agency Statistics Canada reported on Thursday.

It was the first increase in the cost of living in five months, mostly due to higher food and housing prices, the agency said.

The rise in the overall cost of food was fuelled by a 25.8 percent jump in fresh vegetables last month, as well as a 9.7 percent rise in the prices of baked goods and cereal products, and a 6.1 percent increase in meat prices.

Shelter costs, the second-largest factor, increased 3.0 percent, which was slightly less than the 3.3 percent rise in January.

Meanwhile, gasoline prices rose in February over the previous month, but they still remained 19.7 percent lower than a year ago.

Excluding the price of gas, the Consumer Price Index rose 2.5 percent in the 12 months to February. Overall, energy prices fell 8.8 percent during that period.

The Bank of Canada said it has a target of returning consumer price inflation to 2 percent. 

Source: Schednet