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19 Oct 2022
Canada: Annual CPI eases to 6.9% in September vs. 6.8% expected
- Inflation in Canada falls at a slightly slower-than-expected pace.
- USD/CAD trims a part of its intraday gains in reaction to the data.
Inflation in Canada, as measured by the Consumer Price Index (CPI), fell to 6.9% in September from 7.0% in August, data published by Statistics Canada showed this Wednesday. This reading is slightly better than the market expectation of 6.8%.
The Bank of Canada's (BOC) Core CPI, which excludes volatile food and energy prices, unexpectedly climbed to 6.0% on a yearly basis from 5.8% in August, again beating estimates for a reading of 5.6%.
Market reaction
The initial market reaction, however, is limited amid a goodish pickup in the US dollar demand, which continues to act as a tailwind for the USD/CAD pair.