Canada: Annual CPI rises to 2.2% in March vs. 2.3% expected

Annual Core CPI in Canada increased to 1.4% in March as expected.
USD/CAD pair trades in the positive territory above 1.2600.

Eren Sengezer FXStreet

Annual inflation in Canada, as measured by the Consumer Price Index (CPI), rose to 2.2% in March from 1.1% in February. This reading came in slightly lower than the market expectation of 2.3%. On a monthly basis, the CPI stayed unchanged at 0.5%.

Moreover, the Bank of Canada's Core CPI, which excludes volatile food and energy prices, edged higher to 1.4% on a yearly basis in March and matched analysts' estimates.

Market reaction

The USD/CAD pair inched higher with the initial reaction to this report and was last seen trading at 1.2619, up 0.1% on a daily basis.

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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