As we flagged in lower CPI readings from past months, the tax holiday roll off effect is here and it’s bigger than anticipated, with CPI notching its highest reading in 8 months at 2.6%, well above analyst expectations of 2.2%.

As I’m sure your wallets feel, food and clothing deflation reversed course, and inflation in recreation and education intensified to boot.

Looking under the hood of the main baskets shows similar structural trends to previous months, with inflation in shelter and transportation remaining sticky.

Food inflation remained strong in stores too, and inflation in restaurants reversed course from a huge drag in January to a much smaller one in February.

Quick reminder: the February reading was only half a month without the tax holiday - watch out for next month’s print to see the full impact of the roll-off.