Inflation in Canada slowed in February, though food prices continued to rise and remain well above overall inflation levels.
The Consumer Price Index (CPI) increased 1.8 percent compared with February 2025, down from 2.3 percent in January.
In February 2025, prices rose when the federal GST/HST tax break ended midway through the month.
Energy prices were a major factor behind the slower inflation rate. Gasoline prices were 14.2 percent lower than a year earlier, while natural gas prices fell 17.1 percent. Lower prices were also recorded for travel tours and some housing-related costs.
Food prices, however, continued to rise faster than the overall inflation rate. Food purchased from stores increased 4.1 percent compared with a year earlier, slightly slower than the 4.8 percent increase recorded in January.
Prices for fresh or frozen beef rose 13.9 percent year over year.
Even with the slowdown, grocery costs remain much higher than in the past. Food prices have risen 30.1 percent since February 2021.
Restaurant prices also continued to climb, which was 7.8 percent higher than a year earlier.
Cellular service prices rose more slowly than earlier in the year. Prices increased 1.5 percent year over year, compared with 4.9 percent in January.
Provinces with the Harmonized Sales Tax, including Ontario and Atlantic provinces, showed larger declines in the annual inflation rate because last year’s tax break temporarily reduced prices in those regions.