The Globe and Mail reports in its Saturday edition that the chances of another Bank of Canada interest-rate cut took a step backward following two key economic reports Friday, as higher-than-expected inflation and a sharp rebound in retail sales suggested the economy may be weathering the oil shock better than thought. The Globe's David Parkinson writes that Statistics Canada reported the annual inflation rate was 1.2 per cent in March, up from 1 per cent in February. It was the highest level since December, as the impact of the weaker loonie and a rebound at the gas pumps pushed consumer prices higher. The BOC's closely watched core inflation rate surged to 2.4 per cent -- its highest level in more than six years. Meanwhile, Statscan also reported that seasonally adjusted retail sales surged 1.7 per cent month over month in February. February's retail numbers were a bounce back from January's decline. While higher gasoline prices were a factor, the gains were widespread, with 11 of 12 sectors rising. CIBC economist Nick Exarhos says: "Today's data suggest that the BOC's zero-per-cent first quarter [growth] forecast is maybe too pessimistic. A second cut from [the BOC] is now that much less likely."