“Due to the current strength of oil prices, the base effects from the sharp falls in oil prices this time last year, as well as the forthcoming rise in the carbon tax in April, energy inflation is set to surge this month and next, which will push headline inflation to as high as 3.5 per cent. Inflation should then drop sharply but is likely to remain at more than 2 per cent for most of the rest of the year,” Stephen Brown, senior Canada economist with Capital Economics, wrote in a note.