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February CPI Inflation Due Tomorrow

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  • The National Statistical Agency (INE) will publish February CPI inflation tomorrow at 1100GMT (0600ET), with analysts expecting the headline rate to rise to 4.1% y/y, from 3.8% in January. In m/m terms, consumer prices are expected to rise by 0.2%, vs. +0.7% the month before.
  • To recap, the INE updated the CPI basket last month, resulting in a slight increase in the weight of goods vs. services in the new basket. The official headline inflation figure reported by INE (CPI Chained) adds the m/m changes under the new CPI basket to the remaining months under the prior basket. By contrast, BCCh will report a different figure, using slightly different methodology, which it will use for monetary policy decisions. In January, the BCCh measure of headline inflation was tracking at 3.2% y/y.
    • Feb. CPI Chained YoY, est. 4.1%, prior 3.8%
    • Feb. CPI Chained MoM est. 0.2%, prior 0.7%

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