OTTAWA — Statistics Canada says the annual rate of inflation jumped to 2.6 per cent in February as the federal government's two-month sales tax holiday came to an end mid-month.
That's up sharply from a 1.9 per cent increase in January, when Canadians saw GST and HST taken off a variety of household staples, common gifts and restaurant bills for the entire month.
StatCan calculations show that, without the tax break in place for half a month, inflation would have come in at three per cent in February.
Economists polled by Reuters ahead of the release expected inflation would rise more modestly to 2.2 per cent.
While gas prices were up slightly from January to February, StatCan says the annual comparison showed a deceleration last month, helping to rein in the overall rise in inflation.
The consumer price index rose in every province last month, with Ontario and New Brunswick facing the fastest accelerations.