Consumer Price Index, February 2025
March 26, 2025
The Consumer Price Index (CPI) rose 2.6% year over year in February, following an increase of 1.9% in January.
While faster price growth was broad-based in February, the end of the goods and services tax (GST)/harmonized sales tax (HST) break partway through the month contributed notable upward pressure to prices for eligible products. Slower price growth for gasoline prices (+5.1%) moderated the all-items CPI acceleration.
On a monthly basis, the CPI rose 1.1% in February. On a seasonally adjusted monthly basis, the CPI rose 0.7%.
Chart 1
12-month change in the Consumer Price Index (CPI) and the CPI excluding food
End of the GST/HST break puts upward pressure on prices
With the federal tax break ending on February 15, the GST and HST were reapplied to eligible products. This put upward pressure on consumer prices for those items, as taxes paid by consumers are included in the CPI.
As a result, prices for food purchased from restaurants declined at a slower pace year over year in February (-1.4%) compared with January (-5.1%). Restaurant food prices contributed the most to the acceleration in the all-items CPI in February.
Similarly, on a yearly basis, alcoholic beverages purchased from stores declined 1.4% in February, following a 3.6% decline in January.
