February inflation expected to rise to 2.2 percent

Statistics Canada will release February's inflation data today. Many economists believe that inflation has risen because a temporary tax break on essential items ended in February. In December and January, the government offered a GST holiday that helped keep prices low. Now, as the sales tax returns, prices are expected to rise again. Economists predict the annual inflation rate increased to 2.2 percent in February, up from 1.9 percent in January. This report comes right after the Bank of Canada lowered its policy rate last week. The bank hopes this move will help cushion the impact of the ongoing trade conflict with the United States. Officials will be closely monitoring how inflation trends in the coming months.