The Globe and Mail reports in its Wednesday edition that inflation in Canada accelerated sharply in February as the federal tax holiday came to an end, pushing the inflation rate above the Bank of Canada's target for the first time in seven months. The Globe's Mark Rendell writes that the Consumer Price Index increased at an annual pace of 2.6 per cent, up from 1.9 per cent the month before, Statistics Canada said Tuesday. That was well ahead of Bay Street expectations for 2.2-per-cent inflation. The index rose 1.1 per cent on a monthly basis. The surprising jump comes less than a week after the Bank of Canada cut its policy rate for the seventh consecutive time, to 2.75 per cent. After Tuesday's data release, financial markets trimmed their bets on another cut at the next rate announcement in April, putting the odds at about one in three. BMO's Benjamin Reitzes said in a note to clients that inflation data are "subject to as much noise as we've seen in decades" given the end of the GST holiday and uncertainty over tariffs. "We'll see what early April brings on the tariff front, but if the economic outlook doesn't deteriorate further, the BoC will be considering a pause after cutting at seven straight meetings."