Canada: Annual CPI eases to 0.7% in December vs. 1% expected

Inflation in Canada eased to 0.7% YoY in December.
USD/CAD remains weak near 1.2700 ahead of BoC.

Haresh Menghani FXStreet

Inflation in Canada, as measured by the Consumer Price Index (CPI), fell 0.2% MoM in December, data published by Statistics Canada showed this Wednesday. On a yearly basis, the CPI eased to 0.7% as against consensus estimates pointing to a reading of 1%. The readings were well below market expectations.

Conversely, the Bank of Canada's (BoC) Core CPI, which excludes volatile food and energy prices, bettered market expectations and held steady at 1.5% YoY.

Market reaction

The USD/CAD pair showed little reaction to the mixed inflation report and remained depressed below the 1.2700 mark as market participants await the latest BoC monetary policy decision.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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