Canada’s wallets took a hit in February as the annual inflation rate jumped to 2.6%, up from January’s 1.9%, according to Statistics Canada. The culprit? The federal government’s two-month sales tax break on everyday essentials like groceries and household goods wrapped up, sending prices creeping back up.
The data, released Tuesday, paints a clear picture: the tax holiday’s end—captured in a snapshot of Montreal shoppers lugging bags down snowy streets last December—has left Canadians paying more. After a brief reprieve, the return of those taxes has nudged inflation past the Bank of Canada’s sweet spot, stirring the pot for households already juggling rising costs.