Inflation in Canada fell more than anticipated in February.

According to Statistics Canada statistics released on Tuesday, Canada’s annual inflation rate decreased more than anticipated in February as lower gas prices and slower housing cost growth helped down the consumer price index to its lowest point since January 2022.

Inflation fell from 5.9% in January to 5.2% in February, above experts’ prediction that it would decrease to 5.4%. The annual rate deceleration from January to February was the largest in the headline CPI since April 2020, Statscan said.

Month-over-month, the consumer price index was up 0.4%, again lower than a forecast 0.5% gain.

The Bank of Canada forecasts inflation to slow to about 3% by the middle of 2023, and has said it could raise rates further if evidence accumulates suggesting inflation was not declining in line with expectation.

The bank left its key overnight interest rate on hold at the 15-year high of 4.50% earlier in March, and money markets largely expect it to keep rates unchanged at its next meeting in April.

Statscan cited a base effect, or comparison with last year’s strong result, that should persist through June. In February 2022, prices surged at a time of Russia-Ukraine tensions and supply chain disruptions, reaching a peak of 8.1% in June.

Energy prices fell 0.6% on the year in February, led by the first yearly decline in gasoline prices since January 2021, while shelter costs rose at a slower pace year-over-year for the third consecutive month, Statscan said.