Canada’s CPI decelerated in February, registering an increase of 2.8% yoy, which fell short of anticipated 3.1% yoy. This slowdown from January’s 2.9% yoy offers a glimmer of relief as inflationary pressures show signs of easing. When gasoline prices are excluded, CPI was down from 3.2% yoy to 2.9% yoy. Gasoline prices themselves saw a modest uptick of 0.8% yoy, a notable recovery from -4.0% yoy decrease observed in the previous month.
The more specific measures of inflation, which provide a clearer view of underlying trends, also reflected a cooling trend. CPI median, a measure that provides a middle ground by excluding extreme fluctuations, slowed from 3.3% yoy to 3.1% yoy, coming in below the expected 3.3%. Similarly, CPI trimmed, which removes the most volatile components, decreased from 3.4% yoy to 3.2% yoy. Lastly, CPI common, often regarded as a core measure that tracks common price changes across categories, decelerated from 3.4% yoy to 3.1% yoy, again missing the forecast of 3.4%.
