Toronto (Canada), March 21 (EFE).- The interannual inflation rate in Canada fell by 7 ticks in February and cooled to 5.2%, according to data released this Tuesday by Statistics Canada (CE) .
The fall in February represents the biggest slowdown in year-on-year inflation since April 2020 and comes after the Bank of Canada has pursued an aggressive policy of raising interest rates over the past 12 months.
The EC noted that the slowdown in inflation in February is linked to the sharp increase in prices that the country suffered a year ago, by one percentage point, due to the Russian invasion of Ukraine. .
The figures indicate that last month energy prices were 0.6% lower than a year ago, largely thanks to a 4.77% drop in gasoline.
This is the first time since January 2021 that gasoline prices have fallen year-on-year.
Despite the cooling in February, food prices rose 10.6% compared to a year ago.
Core inflation, which excludes food and energy prices, was 4.8%, a tenth less than in January.
Since January 2022, the Bank of Canada has raised interest rates by 0.25% to 4.5% to control inflation, which in June last year stood at 8.1%.
The central bank is expected to announce its next interest rate decision on April 12. At its last meeting, the Bank of Canada decided to keep rates unchanged at 4.5%, while waiting to see if the measures taken curb inflation.
The central bank’s inflation target is 2%.
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