3/17/2021 4:17:32 PM GMT
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By Matías Salord
February’s inflation numbers came in below expectations. The CPI rose 0.5% (consensus: 0.7%) monthly and the annual rate reached 1.1%, the highest in a year. According to National Bank of Canada’s analyst Kyle Dahms inflation should accelerate due to a positive base effect.
Key Quotes:
“February’s CPI report came in weaker than expected. While tepid, annual headline inflation is running at its fastest clip in the last year thanks to the strong rebound in gasoline prices over the past few months.”
“Core inflation measures (which you may recall were reverted last month after an adjustment caused a sizeable downward revision of 5 ticks) stayed the course during the month. The average of the three core measures preferred by the Bank of Canada remained at 1.7%.”