Price of gas fuels February inflation rate increases in Victoria, B.C. and Canada

Price of gas fuels February inflation rate increases in Victoria, B.C. and Canada
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Gas prices have gone up nine cents a litre in Victoria.  File photo.

Gas prices have gone up nine cents a litre in Victoria. File photo.

The rising price of gas is getting most of the blame as Statistics Canada reports Friday morning the pace of inflation went up last month at its fastest rate in more than three years.

The inflation rate across the country jumped to 2.2 per cent in February, up from 1.7 per cent in January.

Victoria, with the price of gas climbing nine cents Thursday, saw a rate increase of six basis points to 2.1 per cent last month.

B.C. saw a big jump in February by reaching 2.8 per cent from the 2.1 per cent rate in January.

Stats Canada says the cost at the pump has climbed 12.6 per cent in year-over-year consumer price figures in February.

Other contributing factors to the rise includes the cost of restaurant meals and passenger vehicles.

Inflation is key to interest rate decisions from the Bank of Canada with experts saying a hike could come sooner than expected with inflation moving past the central bank’s target of two per cent.

“Today’s data does create the risk that the Bank of Canada moves sooner, but with downside risks to the economic outlook still elevated, this summer remains most likely to see the next policy interest rate hike,” TD Bank senior economist James Marple said.

Every province saw an increase in prices last month compared to the year before, with big jumps in Atlantic Canada.

With files from the Canadian Press.

Andy NealAndy Neal

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