New consumer price data released by the National Institute of Statistics shows inflation edging higher for the second straight month in February. The annual rate climbed to 6.1 percent, up from 5.9 percent in January and well above December’s 5.7 percent. The rise comes despite ongoing VAT relief on a broad array of groceries, a policy that previously helped dampen price growth earlier in the year. Observers also note faster price gains in transportation and utilities compared with the prior year, signaling continued shifts in energy markets and household budgets.
On a monthly basis, the consumer price index advanced by 1.0 percent in February, while the year-over-year figure stayed at 6.1 percent. Market analysts anticipate the final March figures from the INE soon, which should clarify whether February’s uptick is part of a broader trend or a temporary spike. Core inflation, which strips out volatile unprocessed foods and energy, rose by 0.2 percentage points to 7.7 percent, underscoring persistent price pressures across a wide range of categories.
INE commentary highlights electricity costs and shifting patterns in food and beverages as major contributors. Compared with February of the previous year, electricity prices posted gains, while the year-over-year rise in food and soft drinks accelerated. The VAT relief measures initiated at the start of the year for certain fresh and processed goods helped soften some price increases but did not reverse the broader inflation momentum.
In the energy and transport sectors, declines in fuels and lubricants were not enough to offset higher transport costs and other goods, producing a mixed year-over-year portrait. Transport services, including intercity travel on state services, moved in ways that reflect broader policy choices and market conditions. Governments have kept targeted relief in place to shield households at risk of price shocks, while wage trends and wider monetary conditions influence the ongoing inflation trajectory.
Policy commentary from the government’s vice president emphasizes that substantial measures have been introduced to cushion inflation’s impact on households. The aim is to maintain support as prices adjust, balancing fiscal measures with the course of monetary policy. Central banks and national authorities expect policy actions to contribute to price stability without hampering growth. Across the European Union, inflation remains among the lower tiers, thanks to prudent policy and uneven price movements across member states.
Overall, February’s inflation data suggest that while relief measures have provided relief, price pressures remain elevated in several key areas. The ongoing challenge for policymakers is to sustain relief where needed while ensuring that monetary conditions align with a path of steady, sustainable growth. As fresh data arrives, analysts will monitor the interaction between energy prices, consumer demand, and policy responses as the inflation story continues to unfold across Canada, the United States, and Europe.
Source: National Institute of Statistics data and policy briefs. The analysis reflects contemporary energy price movements, household expenditure patterns, and recent fiscal support measures, with attention to how these factors influence inflation paths in North America and Europe.