Inflation & Prices

Traders Boost Odds of June Rate Cut as Canada Inflation Cools

  • CPI rose 2.8% in February, below expectations of 3.1%
  • Bank of Canada’s preferred core inflation metrics also slowed

Shoppers walk through produce aisles at a grocery store in Toronto, Ontario.

Photographer: Cole Burston/Bloomberg
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Canadian inflation unexpectedly eased in February, building a case for the Bank of Canada to pivot to less restrictive policy in the coming months.

The consumer price index rose 2.8% last month from a year ago, following a 2.9% increase in January, Statistics Canada reported Tuesday in Ottawa. That’s the slowest pace since June and below the median estimate of 3.1% in a Bloomberg survey of economists.