Investing.com - The overall rate of inflation in Canada picked up from a 15-month low in February, but remained well below the Bank of Canada's target.
Statistics Canada said that the consumer price index rose 1.5% last month from a year earlier. That was higher than January’s reading of 1.4%, which had been its lowest since October 2017. Prices rose by 0.7% from a month earlier.
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Economists had expected prices to rise 0.6% in the month and 1.4% year-on-year. Core consumer prices, which exclude gasoline, were up 1.5% from a year earlier and rose by 0.7% from the previous month.
The Bank of Canada aims to keep inflation at 2%, the midpoint of a target range of 1% to 3% over the medium term.
The Bank left its official interest rates unchanged on March 6, specifically warning of the damage to both confidence and the economy from ongoing trade disputes.
“It will take time to gauge the persistence of below-potential growth and the implications for the inflation outlook. With increased uncertainty about the timing of future rate increases, the Governing Council will be watching closely developments in household spending, oil markets, and global trade policy," it warned at the time.
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