Ahead of tomorrow's US CPI print,...>

US DATA PREVIEW: Ahead of tomorrow's US CPI print, analysts at Barclays forecast

headline CPI to rise 0.1% m/m and 2.1% y/y. For core CPI, they expect some

reversal of the strength in January and forecast an increase of 0.1% m/m and

1.7% y/y. For the NSA CPI index, they expect a reading of 248.8.

- BMO analysts say, paced by sturdy gains in medical and housing costs, we look

for the core CPI to increase 0.2% in February. This is less than January's 0.3%

jump, as the prior month's outsized cost increases for items such as apparel and

automobile insurance return to norm. The monthly move should be sufficient

(0.21% unrounded) to turn the dial up a notch on the annual change, to 1.9% y/y

(matching an 11- month high).

- CIBC note that investors have been spooked by what is still a fairly gradual

pick-up in inflation, but February data should relieve fears of a sharp

acceleration. With energy prices slightly lower in seasonally adjusted terms,

modest increases in food and core CPI should result in only a marginal 0.1%

increase in headline inflation. That would leave the annual rate steady at 2.1%.