Canada: Annual CPI stays unchanged at 2% vs. 1.7% expected

Annual CPI comes in higher than expected in Canada.
USD/CAD drops sharply to 1.3250 area after data.

Eren Sengezer FXStreet

According to the inflation report published by Statistics Canada, the annual Consumer Price Index (CPI) in July stayed unchanged at 2% to beat the market expectation of 1.7%. Following June's decline of 0.2%, monthly CPI arrived at +0.5% on a monthly basis in July.

Additionally, the Bank of Canada's core CPI, which excludes volatile food and energy prices, came in at 2% on a yearly basis in July to fall short of analysts' estimate of 2.3%.

With the initial market reaction, the Loonie gathered strength against its major peers and the USD/CAD pair dropped to a daily low of 1.3255.

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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