February inflation data set to show end of federal tax holiday

OTTAWA — Statistics Canada is set to release inflation figures for February today.

Most economists expect inflation picked up as the federal government’s temporary tax break on a number of household staples came to an end in February.

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The two-month GST holiday cooled prices in December and January, but inflation is forecast to rise again as the sales tax returned mid-month.

Economists polled by Reuters ahead of Tuesday expect the annual rate of inflation rose to 2.2 per cent in February, up from 1.9 per cent in January.

The latest inflation figures come after the Bank of Canada cut its policy rate last week in hopes of softening the blow from the tariff battle with the United States.

The central bank will be watching how inflation data responds to the trade war in the months to come.

This report by The Canadian Press was first published March 18, 2025.

The Canadian Press