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CIBC: Core CPI Likely Remained Sticky Around 3.5% Annualized

CANADA
  • Released Tuesday, CIBC forecast headline CPI inflation at 5.4% Y/Y in February as a result of a gasoline base effect.
  • Excluding food & energy, prices are expected to increase by 0.25% M/M in SA terms after the 0.14% in January, led by air fares, rents and other items.
  • Whilst the BoC’s core measures should ease a little further on a Y/Y basis, it will likely remain sticky around 3.5% annualized due to the impact food prices can have on them.

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