CPI (MoM) Canada
Inflation Jumped higher in February
Starts Wednesday, April 17, 2019 at 12:30
Updated Wednesday, April 17, 2019
Inflation has been softening in Canada during the end of last year. CPI declined in four out of the last five months of 2018. In August and September we saw some negative numbers, showing a 0.1% decline in inflation in August and a 0.4% decline in September. Although in October, CPI inflation jumped 0.3% higher against 0.1% expected. But, inflation turned negative again in November declining by 0.4% and by 0.1% in December. In January inflation was expected to turn positive and increase by 0.2%, but it missed expectations growing by only 0.1% that month. February was quite positive for prices as inflation bounced 0.5% higher, beating expectations of 0.6%. This pair tends to be more volatile during news releases from Canada. Traders who like volatility are better off trading this pair. Please follow us for live coverage of this event by experienced analysts.
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About CPI (MoM) Canada
Canadian CPI (MoM) is a primary measurement of inflationary pressures facing the CAD. It is derived and presented by the National Statistics Bureau, a governmental entity. Canadian CPI (MoM) is a comparison of retail prices facing a typical basket of goods and services, compared on a month-over-month basis. Monetary policy decisions, trade balance, and consumer confidence are sensitive to CPI. Currency markets involving the CAD are receptive to a growing CPI, as it is a signal of inflation. As inflationary pressures grow or reside, the Bank of Canada (BOC) crafts monetary policy accordingly. High CPI values are often viewed as a precursor for tightening monetary policy toward the CAD, while low readings are conducive to a dovish tone.Canadian CPI is capable of swaying CAD valuations dramatically. Strong values lead to bullish participation for the CAD and lagging CPI facilitates bearish price action.