Bank of Canada says February inflation data was very encouraging

Bank of Canada Deputy Governor Toni Gravelle on Thursday said February's inflation figures were "very encouraging", adding the central bank would look at a broader set of data before its next interest rate announcement on April 10.

The bank has raised rates to a 22-year high of 5% in a bid to curb inflation that spiked well above its 2% target.

Consumer prices in Canada surprisingly cooled to 2.8% in February, the lowest in eight months, along with core measures of inflation which the BoC closely watches.

The inflation print was "very encouraging, but it is one number," Gravelle told a business audience in Toronto.

The central bank, he said, would look at the February data and an aggregate of previous inflation numbers when it decides on the projections it will release on April 10 along with the rate announcement.

The bank will also look at other macro economic data such as excess supply, wage growth, firm pricing behavior and inflation expectations, he said.