Inflation Data in Canada

• Core consumer price index (CPI) (m/m) (January),  fact of 0.3%, previous value -0.2%.
• Core consumer price index (CPI) (y/y) (January), fact 1.5%, previous value 1.7%
• Consumer price index (CPI) (m/m) (January), fact 0.1%, forecast 0.2%.

Inflation data in Canada rose in January, showing a noticeable increase in the base consumer price index after a two-month movement near annual lows. On the other hand, inflation data on the contrary slowed down, failing to meet market expectations. Despite the ambiguity, this report can be regarded as positive, but one that will provide restrained support to the Canadian dollar.

Fig. 1. Canadian core consumer price index (CPI) (m) chart

The USD/CAD pair, despite the restraint of data, accelerated the decline, which was reinforced by the weakness of the American data on the growth of the US foreign debt. Thus, the USD/CAD pair has accelerated the decline, confirming the downward trend, but will be limited to support levels: 1.3100 and 1.3070.

Fig. 2. USD/CAD chart. Current price – 1.3120

Read also: “Interest rate. Analysis of changes in interest rates based on economic indicators”

Hanzenko Anton

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