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The Barclays Research Team offers a sneak peek at what to expect from Friday’s Canadian inflation report due on the cards at 1230 GMT.

Key Quotes:

“We forecast headline CPI to have increased 0.4% m/m in February (1.3% y/y), driven by mildly higher gasoline prices and Q1 seasonality.  

We expect core inflation to shift mildly lower in the coming months before slowly recovering toward 2% by year-end.  

The BoC remains in wait-and-see mode and will need to see an improvement in inflationary pressures before resuming tightening.”