Consumer inflation in Canada decreased to 1.8% in February, influenced by a federal tax holiday that affected price comparisons.
Canada's consumer inflation rate has decreased to 1.8% for February, down from a 2.3% rate in January. This significant drop is attributed to a federal GST/HST tax holiday that influenced many consumer goods and services. Statistics Canada pointed out that this holiday, which took place from December 2024 to February 2025, created a base-year effect that makes year-over-year comparisons less reliable, potentially masking the true direction of price trends for consumers.
