canadians paid 52 percent more for goods and services in february than a year earlier led by soaring food prices the national statistical agency said tuesday beating analysts forecasts this followed inflation of 59 percent in january for the second month in a row statistics canada said the yearoveryear deceleration  the largest since april 2020  was due to what it called a baseyear effect that means prices spiked in february 2022 and were now down or rising more slowly relative to last years big uptick the agency said price increases for groceries remained in the double digits for a seventh consecutive month in february amid bad weather in growing regions and higher input costs such as animal feed energy and packaging materials shelter costs rose at a slower pace amid a general cooling of the housing market although februarys headline inflation came in lower than expected underlying price pressures remained hotter than the central bank would like desjardins analyst royce mendes said in a research note but he added given the tightening in financial conditions as a result of events outside canadas borders central bankers wont be itching to move off the sidelines based on this report the bank of canada earlier this month became the first major central bank to pause its aggressive monetary policy holding its key lending rate at 45 percent as inflation eased after eight consecutive rate increases the central bank noted that the economy had slowed as hoped but added it was prepared to resume increasing costs of borrowing if needed to reach its 20 percent inflation target earlier stock markets jumped gradually recovering from last weeks plunge sparked by fears of a fresh financial crisis following the collapse of silicon valley bank and signature bank in the united states the banking sector upheaval led to speculation that more central banks would hold off further hiking rates aimed at cooling inflation in order to calm jitters