Inflation dipped in February, but don’t get too comfortable.
Headline inflation cooled to 1.8%, slipping below the Bank of Canada’s 2% target for the first time since last August.
Grocery prices are still running hot at 4.1% but decelerating, rent inflation has come way down, and cell bills dropped.
The catch: this is likely the calm before the storm. With the Iran conflict pushing crude near US$100, one economist estimates headline inflation could top 3% in the coming months. The BoC decides on rates Wednesday and is widely expected to hold steady again.