The Financial Post reports in its Wednesday edition that Canada's inflation numbers for February flummoxed analysts again, slowing to 2.8 per cent year over year instead of rebounding to 3.1 per cent as expected. The Post's Gigi Suhanic writes that CIBC Capital Markets economist Katherine Judge says, "There was unambiguously good news on the inflation front in Canada in February." She notes it was the second consecutive time inflation came in cooler than expected, providing "ample evidence that higher interest rates are working to tame inflation." Ms. Judge says the Bank of Canada will bypass "volatile" items such as gasoline and grocery prices in its analysis of the data to get a "better signal" from the core numbers. "Virtually every core measure looked more encouraging," says Ms. Judge, highlighting that services, excluding shelter, slowed to 1.6 per cent year over year. That shows weak consumer demand is taking its toll on services and likely translates to a slowing in wage growth, something the Bank of Canada said it needed to see before it would start cutting interest rates. "This report is clearly encouraging from the Bank of Canada's perspective." She is dubious we will see an interest rate cut in June.