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A record low increase in core consumer prices was the last thing economists expected to see, especially given recent advances in the Canadian economy. However, a record low increase is what we got, taking the pressure off the Bank of Canada to raise interest rates anytime soon.

Core inflation -- a measure of the cost of living -- rose only 0.9% in the 12 months ended February, the lowest reading since records began in 1984. In fact, a reading that low would usually cause the Bank of Canada to lower interest rates to stimulate the economy and price increases.

It turns out that Canada's economy is in much better shape than previously thought, causing economists to bring forward their predictions of an interest rate hike.

"The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of the anticipated rebalancing of demand," Canada's central bank governor Mark Carney said in a statement Tuesday.

The Bank of Canada is predicted to keep interest rates on hold when it makes its January announcement on Tuesday.

However, the experts say rates will likely rise in the coming months as the central bank attempts to prevent a crippling rise in personal debt.

According to a Reuters poll, Canada's leading interest rate strategists all expect the benchmark interest rate to remain at 1 per cent this week, allowing the economy more time to adjust to the last rate hike in September at a time when the U.S. economy -- Canada's biggest trade partner -- is still struggling to create jobs and recover from recession.

The central bank last raised the benchmark interest rate in September following quarter point rises in June and July. Prior to that, the key interest rate had sat at a record low 0.25 per cent for 13 months to ease the impact of recession on the economy and encourage the flow of money through the almost stagnant financial system.