Despite soaring gas prices, February inflation slips to 2%

OTTAWA – The pace of inflation in Canada ticked lower in February as higher prices for gasoline were offset in part by lower costs for fresh fruit and vegetables.

Statistics Canada says the consumer price index rose 2.0 per cent on a year-over-year basis in February. The move compared with a 2.1 per cent increase in January.

READ MORE: Gas prices are rising: Here’s how it will make living in Canada more expensive

Economists had expected an increase of 2.1 per cent for February, according to Thomson Reuters.

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Excluding gasoline, the consumer price index was up 1.3 per cent in February compared with a year ago, following a 1.5 per cent increase in January.

WATCH ABOVE: Why Canadian gas prices are on the rise. Mike Drolet explains.

2:40 Why Canadian gas prices are on the rise

Prices were higher in seven of the eight major components tracked by Statistics Canada. Only the food component fell.

Transportation costs gained 6.6 per cent compared with a year ago, boosted by a 23.1 per cent rise in gasoline. Food prices fell 2.3 per cent as fresh vegetables dropped 14.0 per cent and fresh fruit slipped 13.3 per cent.