Canada's core inflation rate dropped to 0.9 per cent in February, the lowest level since Statistics Canada began tracking the measure in 1984.

Bank of Canada pays attention to the core rate in making its policy decisions. It strips out eight of the most volatile items, including food and energy.

The 12-month core rate was a 1.4 per cent at the end of January.

With all components considered, Canada's overall inflation rate fell one-tenth of a point to 2.2 per cent over the 12 months to the end of February, with energy prices the biggest factor holding it from dropping even further. It was at 2.3 per cent in January.

Energy prices rose 10.6 in February from a year earlier, compared to a nine per cent pace in January, Statistics Canada said. Gasoline prices jumped 15.7 per cent during the month, from a 13 per cent annual pace in January.

Economists were expecting the core rate to come in at 1.1 per cent and the overall rate to drop only slightly to 2.3.

On a month-to-month basis, consumer goods were 0.3 per cent more expensive last month than in January, again mostly due to higher energy and gasoline prices.

On a regional basis, Nova Scotia remained the province with the highest inflation rate at 3.4 per cent. Many people in the province use oil and other fuel to heat their homes.

Alberta continued to enjoy the most stable prices, with an inflation rate of 1.2 per cent.

Drivers in every province except Manitoba faced double-digit price increases for gasoline on a year-over-year basis.

With files from The Canadian Press