Official data released by Statistics Canada (StatCan) showed that the annual inflation rate in Canada rose to 2.6% in February, driven by the end of the temporary tax exemption.

According to the report, the increase in service and energy prices was the main contributor to the rise in the inflation rate, as the cost of fuel and rents saw a notable increase after the expiration of the tax exemption.

Economic experts indicated that this increase could prompt the Bank of Canada to reassess its monetary policy in light of ongoing inflationary pressures.

Statistics Canada confirmed that the inflation rate remains within the central bank's target range, but the continued rise in costs could pose an additional challenge for economic decision-makers in the upcoming phase.