Canada’s annual inflation rate increased to 2.6% in February as the federal government’s temporary tax break on certain purchases came to an end mid-month, Statistics Canada said on Tuesday.
This marked a significant increase from 1.9% in January when the tax break applied for the whole month.
The surge was also higher than the 2.2% increase expected by economists.
Without the partial tax break, the annual inflation rate would have been 3%.
Price increases were broad-based, affecting various sectors including food, clothing, alcohol, and transportation, Statistics Canada said.
Food prices rose 1.3%, clothing and footwear were up 1.4%, transportation was up 3%, and shelter gained 4.2%.