Februarys inflation report was a reason to celebrate. Heres why – National [Video]

The annual rate of inflation ticked down in February amid relief on grocery and cellphone bills, Statistics Canada said Tuesday.

Even though economists warn that inflation might still have a “bumpy” path back to the Bank of Canada’s two per cent target, the latest price figures are solidifying bets for when interest rate cuts could start.

Overall inflation was 2.8 per cent year-over-year in February, down from 2.9 per cent in January, the StatCan said. The easing surprised most economists, who had expected an uptick in inflation for the month.

“We’ve had two months in a row of inflation coming in under expectation,” says RSM economist Tu Nguyen. “It’s a reason to celebrate.”

Prices at the grocery store were one of the biggest contributors to the step down, rising 2.4 per cent in February, down from 3.4 per cent in the previous month. This marks the first month since October 2021 that grocery inflation came in below the overall inflation rate, StatCan noted.