- Annual inflation in Canada rose at a faster rate than expected in August.
- USD/CAD is trading in negative territory, near 1.3400, following the data.
Inflation in Canada, measured by the variation of the Consumer Price Index (CPI) rose at an annual rate of 4% in August, compared to 3.3% in July. This data exceeded market expectations, which expected 3.8%. This is the highest inflation ceiling in four months. On a monthly basis, the CPI rose 0.4%, compared to analysts’ estimate of a 0.2% increase.
Additionally, the Bank of Canada reported that the monthly core CPI, which excludes food and energy price volatility, rose 0.1%, while the annual core CPI rose to 3.3% from 3.2%, its level. highest in three months.
Market reaction
The USD/CAD pair fell immediately after the publication, losing 0.65% on the day, settling at 1.3400.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
