Canada: Headline CPI to rise 0.4% m/m in February - Barclays

The Barclays Research Team offers a sneak peek at what to expect from Friday’s Canadian inflation report due on the cards at 1230 GMT.

Key Quotes:

“We forecast headline CPI to have increased 0.4% m/m in February (1.3% y/y), driven by mildly higher gasoline prices and Q1 seasonality. 

We expect core inflation to shift mildly lower in the coming months before slowly recovering toward 2% by year-end. 

The BoC remains in wait-and-see mode and will need to see an improvement in inflationary pressures before resuming tightening.”