February inflation lower than expected

Consumer prices in February were up 2.2% from a year earlier, Statistics Canada said Friday.

Economists had expected annual inflation of 2.3%, which is what it was in January.

Core inflation, which strips out volatile items such as energy and certain foods, came in at 0.9%. Economists were expecting a core inflation rate of 1.1%. It was 1.4% in January.

Gasoline prices again proved to be a major factor in the overall price gains consumers were seeing last month. Prices at the pump were up 15.7% from a year earlier, building on the 13% growth that was seen in January.

When not accounting for gasoline, annual inflation would have been 1.6% in February, down from 1.8% in January.

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