Canada: Annual CPI declines to 4.3% in March as expected

Annual CPI inflation in Canada continued to soften in March.
USD/CAD trades in negative territory below 1.3400 after the data.

Eren Sengezer FXStreet

Inflation in Canada, as measured by the Consumer Price Index (CPI), declined to 4.3% on a yearly basis in March from 5.2% in February, Statistics Canada reported on Tuesday. This reading came in line with the market forecast. On a monthly basis, the CPI rose by 0.5% as expected.

Additionally, the Bank of Canada's Core CPI, which excludes volatile food and energy prices, dropped to 4.3% on a yearly basis from 4.7% in February, compared to analysts' estimate of 4.2%.

Market reaction

USD/CAD edged slightly lower with the initial reaction and the pair was last seen losing 0.2% on the day at 1.3365.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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