AUS
NZ
UK
CA
USA
IND
Source: ivosar, Shutterstock
The Canadian Consumer Price Index (CPI) surged higher in February on mounting petroleum prices, though it marginally missed analyst expectations.
The inflation rate soared as much as 1.1 per cent year-over-year (YoY), against 1.0 per cent in January, reported Statistics Canada on Wednesday, March 17.
Macroeconomics analysts’ estimation by Reuters had pegged the 12-month increase to 1.3 per cent in February.
Consumer Inflation Index Drivers In February
The primary reason for this rise was gasoline prices that gained for the third month in a row, up 6.5 per cent in February versus 6.1 per cent January, and propelled growth in consumer prices in last month.
The oil prices jumped over a steady recovery in global demand for petrol, production cuts by major oil drillers from OPEC+ countries, and a heavy snowfall-caused shutdown in Texas, the U.S in the last month.
Other gauges are homeowners' replacement cost index and food prices. the price of new apartments went up 7 per cent YoY in February, drove by higher building expenses, lower interest rates, and robust demand for new homes. This is the largest annual rise registered since February 2007.
Rates for food bought from grocery stores increased by 1.3 per cent YoY in February, against a 0.1 per cent marginal increase in January. The prices rise came from higher fresh fruit prices that grew 5.9 per cent YoY in February. Food prices from restaurants also climbed 2.9 per cent YoY in the last month, versus 2.8 per cent in January.
Image Source: Kalkine Group @2020
The Bank of Canada considers CPI as the best indicator of the economy's performance.
Meanwhile, the Mortgage Interest Cost Index dropped 5.4 per cent YoY in February, after declining 4.3 per cent in January, led by renewed mortgages at unprecedented low interest rates.
