The annual rate of inflation ticked up last month as a temporary “tax holiday” ended, Statistics Canada reported on Tuesday.
Consumer prices in Canada went up to 2.6 per cent in February, up from 1.9 per cent the month before.
StatCan said the end of the GST/HST break on Feb. 15 contributed “notable upward pressure to prices for eligible products.”
For two months, the federal government removed the goods and services (GST) or harmonized sales tax (HST) on dozens of items, including certain groceries and restaurant meals.
That tax break dipped restaurant food prices by 1.4 per cent year-over-year.
But once the GST/HST was reapplied, “restaurant food prices contributed the most to the acceleration” in the overall price index in February, StatCan said.
Alcoholic beverages, children’s clothing and toys were also included in the tax holiday and saw their costs drop similarly in February, but not as much as in January.
Canadians saw some relief at the pumps in February, with a slower annual price growth of 5.1 per cent for gas prices, compared with 8.6 year-over-year increase in January.
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On a monthly basis, gas prices increased by 0.6 per cent last month.
“This increase was largely related to higher refining costs amid planned refinery maintenance across North America,” StatCan said.
“This offset lower crude oil prices, which were largely a result of increased American supply and tariff threats, which contributed to concerns of slowing global growth.”
Canadians also paid more for trips last month, with prices for travel tours accelerating 18.8 per cent year-over-year.
StatCan pointed to increased demand in travel to the United States over the President’s Day weekend to explain the price hikes.
The consumer price index rose in every province last month, with Ontario and New Brunswick facing the fastest accelerations.
The February inflation figures do not directly reflect the imposition of tariffs or counter-tariffs between Canada and the U.S., which went into effect after a series of deadlines and announcements in March.
— with files from The Canadian Press
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