Cheaper Gasoline Pushes February Inflation Rate Down to 2.2 Per Cent
Posted on: Thursday, 16 March 2006, 09:00 CST
OTTAWA (CP) - Cheaper gasoline prices at the pump helped drive the annual inflation rate down to 2.2 per cent in February, from 2.8 per cent the month before, Statistics Canada said Thursday.
The price of gasoline fell by 6.8 per cent from January, the agency said.
However, energy prices generally were more expensive than they were one year earlier. Filling up the gas tank cost 7.4 per cent more in February, compared with a year earlier.
Still, that's the smallest annual increase since June 2005 when a 4.2 per cent rise was reported in comparison with June 2004, the agency said.
Adding to inflation last month was more expensive natural gas. The price of natural gas shot up by 17.1 per cent last month, compared with February 2005.
The increase in natural gas prices ranged from a modest 4.6 per cent rise in Alberta to a whopping 22.7 per cent annualized jump in Ontario.
But the core rate of inflation held steady in February at 1.7 per cent, the agency said.
That measure excludes many volatile food and energy items and is most closely tracked by the Bank of Canada.
After raising its key policy rates at five consecutive opportunities to its current level of 3.75 per cent, the central bank signalled earlier this month it may leave rates steady for some time.
This report won't likely make its next rate decision any easier, since it suggests price pressures are under control.
The central bank aims to hold inflation around two per cent, the middle of its target range of one to three per cent.
Besides higher energy prices in February, compared with one year earlier, higher homeowner replacement costs and the price to buy or lease autos also added to inflation.
Those factors were somewhat offset by cheaper insurance premiums for vehicles, less expensive women's clothing and cheaper computer gear.
Source: Canadian Press
Related Articles
- British Gas Cuts Electricity Prices by 10% - Is Now the Cheapest Electricity Supplier in Britain
- Canada's Annual Inflation Rate Unchanged in March at 2.2 Per Cent
- Inflation Rate Drops to 2.2 Per Cent in February As Gasoline Prices Ease
- Inflation Rate Drops to 2.2 Per Cent in February With Cheaper Gasoline
- Slower Rise in Gasoline Prices Holds Annual Inflation Rate to Two Per Cent
- 700,000 Homes Face Power Bill Hike for Second Time This Year 13.5- Per Cent Gas Charge Rise for SSE Customers
- High Gasoline Prices in September Drove Annual Inflation Rate to 3.4 Per Cent
- Millions Face Higher Bills As Scottish Gas Announces 14 Per Cent Rise
- Jamaicans Hit By 8 Per Cent Increase in Petrol Prices
 |
 |
User Comments (0)
RSS Feeds