Inflation returns

Inflation unexpectedly shot up in February with the core rate up 2.1 per cent.

It's the first time the core rate has crept over the Bank of Canada's two per cent target in more than a year.

The annual inflation rate fell to 1.6 per cent in February, down from 1.9 per cent the previous month.

Annualized prices rose in gasoline, food, car insurance, autos and hotel accommodation.

Mortgage interest costs and shelter costs fell, as did prices for footwear and clothing.

Inflation slowed in all provinces but British Columbia, which was positively impacted by its role as host of the Olympic Winter Games.