Canada inflation rate ticks down to 2.8 per cent [Video]

OTTAWA – Canada’s inflation figures came in softer than expected for a second consecutive month, suggesting to economists that the Bank of Canada will have ample grounds to begin cut interest rates in the coming months.

Statistics Canada’s consumer price index report Tuesday showed the annual inflation rate fell to 2.8 per cent amid sharp declines in cellular and internet services, as well as slower grocery price growth.

Economists were widely expecting Canada’s inflation rate to have risen above the 2.9 per cent rate set in January, in part due to higher gasoline prices.

“This is an unambiguously good report from the Bank of Canada’s perspective. It essentially shows that high interest rates are working to tame inflation, which is what they’re looking for to start cutting interest rates,” Katherine Judge, a director and senior economist and CIBC Capital Markets, said in an interview.

The federal agency says prices for wireless services were down …