Canada annual CPI inflation softens to 3.1% in October vs. 3.2% expected
- Annual inflation in Canada declined at a faster pace than forecast in October.
- USD/CAD trades in negative territory at around 1.3700 after the data.
Inflation in Canada, as measured by the change in the Consumer Price Index (CPI), softened to 3.1% on a yearly basis in October from 3.8% in September. This reading came in below the market expectation of 3.2%. On a monthly basis, the CPI rose 0.1%, matching analysts' estimate.
"The year-over-year deceleration was largely a result of lower prices for gasoline (-7.8%) in October," Statistics Canada noted in the press release. "Excluding gasoline, the CPI rose 3.6% in October, following a 3.7% increase in September."
Moreover, the Bank of Canada reported that the monthly Core CPI, which excludes volatile food and energy prices, increased 0.3%, while the annual Core CPI edged lower to 2.7% from 2.8%.
Market reaction
USD/CAD stays under modest bearish pressure and trades in negative territory at around 1.3700 after the inflation report.
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.
