CPI up 1% last month

Canada's annual inflation rate increased at the same pace for the second month in a row — rising just 1.0% in February.

Statistics Canada's latest consumer price index says cheaper gas prices once again played a big role in keeping inflation low as items in almost every category climbed.

The agency says gasoline prices fell 21.8% in February compared with the previous year, while fuel oil tumbled 23.4%.

The report found the higher cost for food and shelter led the upward pressure on prices. The price of meat rose 12.4% compared to a year earlier, while natural gas increased 10.8%.

Inflation increased in six provinces in the 12 months leading up to February, with Ontario registering the biggest gain at 1.3%.

Statistics Canada says the headline inflation rate would have increased to 2.2% on a year-over-year basis in February if gas prices had been excluded compared with a 2.4% increase in January.

The core index, which excludes some volatile items such as gasoline, was up 2.1% compared with a year ago in February, after increasing 2.2% in January.

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