Higher gasoline prices fuel Canada inflation

Canadian inflation rose 1.1 per cent in February from a year earlier as gasoline prices increased for a third straight month, the government said Wednesday.

The hike in gasoline prices came amid a gradual recovery in global demand, as well as crude oil supply cuts in major oil-producing countries and shutdowns in the southern United States due to bad weather.

On a monthly basis, the consumer price index rose 0.1 percent in February. Analysts had expected it to rise 0.7 percent.

According to Statistics Canada, low-interest rates and strong demand for homes with more space continued to push prices higher for new housing, marking the largest yearly gain since February 2007.

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The costs of food, passenger vehicles and household appliances such as stoves and refrigerators were also up.

Costs of hotel accommodations, meanwhile, remained low as public health authorities maintained restrictions on non-essential travel to slow the spread of Covid-19.

Prices for telephone services and clothing were also up in the month.

[AFP]

Vanguard News Nigeria

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