Canada: Focus on CPI this week - NBF

In view of analysts at National Bank Financial, for the Canadian markets, lot of attention will be on February’s consumer price index.

Key Quotes

“The first rise in gasoline prices in the last seven months may have led the headline price index to rise 0.5% (not seasonally adjusted). This would allow the annual inflation rate to drop 1 tick to 1.3%. The annual rate of CPI-common, meanwhile, may have declined one tick to 1.8%.”

“In other news, strong auto sales in January may have translated into the first expansion of headline retail sales in three months. Ex-auto sales, for their part, will probably come in a tad weaker due to falling pump prices which may have weighed on gasoline station receipts.”

“We’ll also keep an eye on the release of several other indicators for January including wholesale trade sales and international securities transactions. Finally, the federal government will present its budget on Tuesday.”