Ahead of today's Canadian CPI release........>

CANADA: Ahead of today's Canadian CPI release analysts at RBC see a firm 0.6%

m/m gain for headline CPI in January, partially supported by higher gasoline

prices in the month. However, last year's even stronger headline increase in

January should not repeat itself, with substantial declines in YoY rates for

gasoline, autos/recreational vehicles and travel services prices expected,

taking the headline YoY rate down to 1.6% from 1.9%.

- CIBC expect The annual rate on headline prices will slip by a few ticks to

1.5% given echo effects from last year, but underlying inflation trends should

still look decent in the week ahead's CPI report.

- TD Securities say energy prices should help drive a 0.6% gain due in part to

adjustments in carbon pricing. Base effects will see inflation slip by 0.3pp to

1.6%, but this should prove temporary before a rebound in Feb.

- BMO say consumer prices likely jumped 0.5% in January, fuelled by the

resurgence in energy prices. Gasoline prices were up over 3%, while heating oil

saw an even larger gain. The rest of the basket is expected to see rising prices

as well, as January is a seasonally strong month for inflation.