Inflation stalls at 1 per cent, retail sales decline

Inflation stalls at 1 per cent, retail sales decline

Inflation stalls at 1 per cent, retail sales decline Inflation held at 1 per cent in February after doing the same in January. The core rate fell slightly to 2.1 per cent from 2.2 per cent in January. The figures, released today by StatsCan, are at the lower end of the BoC’s target but are roughly in line with analysts’ expectations. Oil prices are the main drag with gasoline prices having dropped 21.8 per cent from February 2014. The central bank says gas prices will cut first-quarter inflation to 0.5 per cent. Food has become more expensive with fresh meat and vegetables up 12.4 and 8.4 per cent respectively. Home and mortgage insurance was also up 8.6 per cent. Retail sales were down 1.7 per cent in value and 1.2 per cent in volume in February from a month earlier.