For the first time since October 2021, the rising cost of groceries didn't outpace overall inflation.
The cost of food bought in a store has increased 21.6 per cent over the past three years, but it only rose 2.4 per cent last month.
Supply constraints caused by poor weather in growing regions kept grocery costs elevated, but the cost of fresh fruit, processed meat, and fish decreased, while cereal rose just 1.7 per cent and dairy cost 0.6 per cent more.
Statistics Canada released its Consumer Price Index Report for February on Tuesday morning.
Year-over-year inflation was 2.8 per cent in February, down one-tenth of a percentage point from January.
While gasoline, travel tours, rent, and mortgage interest costs continued to put upward pressure on the inflation rate, lower bills for cellular and internet services kept it close to the Bank of Canada's target of two per cent.
The cost of gasoline rose 0.8 per cent after rising four per cent the month before.
Excluding gas, the inflation rate was 2.9 per cent.
Spurred on by increased demand for travel to the U.S., Mexico, and the Caribbean, travel tours rose 4.8 per cent in February, up from January's 3.3 per cent jump.
The Bank of Canada cited inflationary pressures for keeping its key lending rate at 5 per cent earlier this month. Economists believe it will cut the rate this spring if inflation cooperates. The next announcement is on April 10.
Statistics Canada plans to release the March Consumer Price Index report on April 16.
