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Canada's Inflation Drops to 1.8%, But Risks Loom

3/17/2026

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Story summary
  • Canada’s inflation rate fell to 1.8% in February from 3.4% in January, due to lower energy prices and easing supply chains.
  • Economists warn relief may be short-lived due to rising energy costs from the Middle East conflict.
  • The end of a temporary tax holiday influenced the figures.
  • Food inflation moderated to 5.4%.
  • The Bank of Canada is expected to maintain its interest rate amid these uncertainties.