Canada: Annual CPI rises to 6.8% in April versus expected 6.7%

Annual CPI was a little hotter than expected in Canada in April.
The loonie saw some kneejerk strength but has since pulled back.

Joel Frank Independent Analyst

The pace of annual inflation in Canada according to the Consumer Price Index (CPI) rose to 6.8% in April, data released by Statistics Canada on Wednesday showed. That was slightly above expectations for a YoY rate of CPI to come in unchanged from March at 6.7% in April. MoM, prices rose at a pace of 0.6% according to the CPI, above the expected rise of 0.5% and down from last month's 1.4% gain.

In terms of the Core CPI, the YoY rate was hotter than the expected 5.4% at 5.7%, a surprise rise from March's 5.5% annual rate. Prices were up 0.7% MoM, above the expected rise of 0.4% but down from March's 1.0% gain.

Market Reaction

The loonie saw some kneejerk strength as a result of the hotter than forecast inflation numbers, but USD/CAD has since pulled higher to its pre-data levels in the 1.2815 area.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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