OTTAWA: Canadians paid 2.2 percent more for goods and services in February than a year earlier, as prices for energy and autombiles rose and mortgage rates climbed, the government said Friday.
The figure was higher than analysts had expected after the 1.7 percent consumer price index posted in January.
"Inflation is BAAAACK, but its not yet a scary monster, being essentially in line with what the Bank of Canada actually wanted to see," said CIBC Capital Markets analyst Avery Shenfeld.
While prices are "gradually heating up, growth looks a bit soft," he added, noting a "disappointing" rebound in retail sales of just 0.3 percent after a drop at the end of 2017.
According to Statistics Canada, gasoline and natural gas prices rose in the month. And the price of buying a passenger car or truck increased after dealerships ended rebates on 2018 models.
Travel tours, internet access, restaurant meals and mortgage interest rate costs were also up, while hotel rooms, electricity, computers and video equipment, and furniture prices fell.
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