MNI BRIEF: Canada Covid-Weighted Feb CPI 1.5% vs Regular 1.1%

Canada's consumer price index rose 1.5% in February from a year earlier after adjusting basket weights for new spending habits linked to Covid-19, versus the 1.1% unadjusted gain, a sign price pressures are closer to the central bank's 2% target before any major economic rebound from the pandemic.

The February increase matches January for the highest in the series back to March of last year. The report affirms the BOC's view there has been a small but noticeable understatement of the true inflation trend.

Statistics Canada said this report will be the last in its joint data project with the Bank of Canada before it does a full overhaul of the CPI baskets on July 28. Industry sources have told MNI the economy has become more resilient as firms adapt to health restrictions.