The Consumer Price Index (CPI)inched higher in January as a result of lower fuel costs. Over the past twelve months the CPI increased just 1 per cent. The Core CPI, which excludes fuel, food and other volatile components, increased 2.4 per cent over the same period. While core inflation was slightly above the Bank of Canada (BoC) target of 2 per cent, inflationary pressures in Canada appear modest at best. In our opinion, the BoC will likely stay in a neutral position regarding interest rates and not change its trend-setting rate at its March 4 announcement.
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